XML 89 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes The following is a geographical breakdown of income before the provision for income taxes (in thousands):
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
Domestic | $ | 34,678 |  |  | $ | 25,794 |  |  | $ | 16,177 |
Foreign | 351 |  |  | 1,281 |  |  | (88 | )
Total income before provision for income taxes | $ | 35,029 |  |  | $ | 27,075 |  |  | $ | 16,089 |
The provision for income taxes consists of the following (in thousands):
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |
Federal | $ | 8,218 |  |  | $ | 7,181 |  |  | $ | 4,285 |
State | 1,621 |  |  | 1,006 |  |  | 896 |
Foreign | 447 |  |  | 154 |  |  | (70 | )
Total current | 10,286 |  |  | 8,341 |  |  | 5,111 |
Deferred: |  |  |  |  |
Federal | 1,287 |  |  | 2,169 |  |  | 1,116 |
State | (263 | ) |  | 651 |  |  | (527 | )
Foreign | (260 | ) |  | (264 | ) |  | — |
Total deferred | 764 |  |  | 2,556 |  |  | 589 |
Total provision for income taxes | $ | 11,050 |  |  | $ | 10,897 |  |  | $ | 5,700 |
The provision for income taxes differs from the amount computed by applying the statutory federal tax rate as follows (in thousands):
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
U.S. federal tax provision at statutory rate | $ | 12,260 |  |  | $ | 9,476 |  |  | $ | 5,631 |
State taxes | 883 |  |  | 1,077 |  |  | 240 |
Non-deductible expenses | 297 |  |  | 530 |  |  | 481 |
Acquisition costs | — |  |  | 431 |  |  | — |
Share-based compensation expense | 407 |  |  | 403 |  |  | 443 |
Research tax credits | (1,430 | ) |  | — |  |  | (755 | )
Domestic production deduction | (816 | ) |  | (601 | ) |  | (271 | )
Other | (551 | ) |  | (419 | ) |  | (69 | )
Total | $ | 11,050 |  |  | $ | 10,897 |  |  | $ | 5,700 |
Significant components of our deferred tax assets (liabilities) are as follows (in thousands):
| December 31,
| 2013 |  | 2012
Deferred tax assets (liabilities): |  |  |
Tax credit carry forwards | $ | 3,160 |  |  | $ | 2,990 |
Inventory related items | 2,947 |  |  | 2,900 |
Deferred revenue | 11,074 |  |  | 11,497 |
Stock compensation | 7,447 |  |  | 9,331 |
Loss carry forwards | 64 |  |  | 53 |
Other, net | 5 |  |  | 69 |
Subtotal | 24,697 |  |  | 26,840 |
Less: valuation allowance | (39 | ) |  | (39 | )
Total net deferred tax assets | 24,658 |  |  | 26,801 |
Reserves and accruals | (353 | ) |  | (573 | )
Depreciation and amortization | (38,681 | ) |  | (39,840 | )
Total deferred tax liabilities | (39,034 | ) |  | (40,413 | )
Net deferred tax liabilities | $ | (14,376 | ) |  | $ | (13,612 | )
Deferred income tax assets (liabilities) are provided for temporary differences that will result in future tax deductions or future taxable income, as well as the future benefit of tax credit carry forwards. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. On the basis of this evaluation, as of December 31, 2013, no significant valuation allowances have been recorded in any jurisdiction. As of December 31, 2013, we had state net operating loss carry forwards available for state income tax purposes of approximately $2.2 million. If not utilized, these carry forwards will begin to expire in 2026. In addition, as of December 31, 2013 we had federal and California research credit carry forwards of approximately $1.5 million and $7.2 million, respectively. If not utilized the federal credit carry forwards will begin to expire in 2022, while the California credits can be carried forward indefinitely. Pursuant to the requirements of ASC 718, we do not include unrealized stock option attributes as components of our deferred tax assets. The tax effected amounts of gross unrealized net operating loss and business tax credit carry forwards excluded under ASC 718 for the year ended December 31, 2013 are approximately $2.6 million, which will result in increases to additional paid in capital if and when realized as a reduction in income taxes otherwise paid. In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. As of December 31, 2013, we have not made a provision for U.S. federal income and state income taxes on accumulated and current earnings of $2.8 million related to our U.K. and German subsidiaries because these earnings are intended to be indefinitely reinvested in operations outside the United States. If we expect to distribute those earnings in the form of dividends or otherwise, we would be subject to U.S. and state income taxes reported as a component of income tax expense, in the amount of $1.1 million. This amount may be reduced by any foreign tax credits available at the time of repatriation. We file income tax returns in the U.S. and various states and foreign jurisdictions. In the normal course of business, we are subject to examination by tax authorities, including in major jurisdictions in the United States, California, UK and Germany. In 2012, we concluded audits by the Internal Revenue Service and California Franchise Tax Board for tax years 2008 and 2009. However, all of the net operating loss and research credit carry forwards that may be used in future years are subject to adjustment, if and when utilized. As such our federal and California tax years remain open from 1996 and 1992, respectively. The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the three years ended December 31, 2013 is as follows (in thousands):
Balance as of December 31, 2010 | $ | 5,431 |
Decreases related to tax positions taken during the prior period | (88 | )
Increases related to tax positions taken during the current period | 453 |
Balance as of December 31, 2011 | $ | 5,796 |
Increases related to tax positions taken during a prior period | 43 |
Increases related to tax positions related to MTS | 1,066
Increases related to tax positions taken during the current period | 422 |
Decreases related to settlements | (33 | )
Decreases related to expiration of statute of limitations | (379 | )
Balance as of December 31, 2012 | $ | 6,915 |
Increases related to tax positions taken during a prior period | 406
Decreases related to tax positions taken during the prior period | (79 | )
Increases related to tax positions taken during the current period | 764 |
Decreases related to expiration of statute of limitations | (32 | )
Balance as of December 31, 2013 | $ | 7,974 |
As of December 31, 2013, the total amount of gross unrecognized tax benefits, if realized, would affect our tax expense by approximately $7.0 million. Our policy is to recognize interest and penalties related to unrecognized tax benefits in operating expenses. The total amount of interest and penalties recorded in 2013 was not significant. We do not expect any material changes to our unrecognized tax benefits over the next twelve months.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration