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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes [Abstract] |
Income Taxes | Note 12—Income Taxes Significant components of the income tax provision (benefit) are as follows (in thousands):
|  | Year ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,550 |  |  | $ | (2,729 | ) |  | $ | (9,196 | )
State |  |  | 1,211 |  |  |  | 137 |  |  |  | 273 |
Foreign |  |  | 883 |  |  |  | 658 |  |  |  | 439 |
Total current |  |  | 6,644 |  |  |  | (1,934 | ) |  |  | (8,484 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 1,107 |  |  |  | (3,499 | ) |  |  | 10,474 |
State |  |  | 111 |  |  |  | (112 | ) |  |  | 26 |
Total deferred |  |  | 1,218 |  |  |  | (3,611 | ) |  |  | 10,500 |
Provision (benefit) for income taxes |  | $ | 7,862 |  |  | $ | (5,545 | ) |  | $ | 2,016 |
A reconciliation of the effective tax rate to the US federal statutory tax rate is as follows (in thousands):
|  | Year ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Federal statutory tax rate |  |  | 35.0 % |  |  |  | 35.0 % |  |  |  | 35.0 % |
State income taxes, net of federal benefit |  |  | 2.3 |  |  |  | 0.1 |  |  |  | 0.9 |
Change in valuation allowance |  |  | (8.5) |  |  |  | (8.4) |  |  |  | (38.6) |
Warrant liability fair value adjustment |  |  | (8.5) |  |  |  | (15.3) |  |  |  | (0.1) |
Other |  |  | (0.3) |  |  |  | (0.1) |  |  |  | (1.4) |
Effective income tax rate |  |  | 20.0 % |  |  |  | 11.3 % |  |  |  | (4.2) % |
Deferred income taxes reflect the tax effect of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the value reported for income tax purposes, at the enacted tax rates expected to be in effect when the differences reverse. The components of deferred tax assets and liabilities are as follows (in thousands):
|  | December 31, |
|  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 12,218 |  |  | $ | 14,238 |
Allowance for doubtful accounts |  |  | 212 |  |  |  | 37 |
Inventory valuation reserves |  |  | 1,185 |  |  |  | 565 |
Equity compensation |  |  | 1,769 |  |  |  | 414 |
Intangible assets and goodwill |  |  | 15,228 |  |  |  | 18,266 |
Tax credit carryforwards |  |  | 841 |  |  |  | 869 |
Other |  |  | 32 |  |  |  | 7 |
Total gross deferred tax assets |  |  | 31,485 |  |  |  | 34,396 |
Valuation allowance |  |  | (19,460 | ) |  |  | (22,940 | )
Total deferred tax assets, net |  |  | 12,025 |  |  |  | 11,456 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | (5,327 | ) |  |  | (2,422 | )
Convertible debt, net of discount |  |  | (8,559 | ) |  |  | (9,480 | )
Prepaid insurance and other |  |  | (78 | ) |  |  | (132 | )
Total gross deferred tax liabilities |  |  | (13,964 | ) |  |  | (12,034 | )
Net deferred tax liabilities |  | $ | (1,939 | ) |  | $ | (578 | )
Deferred taxes are presented in the balance sheets as follows on financials:
|  | December 31, |
|  | 2011 |  |  | 2010 |
Current deferred tax assets |  | $ | 841 |  |  | $ | 575 |
Non-current deferred tax assets |  |  | — |  |  |  | 117 |
Current deferred tax liabilities |  |  | — |  |  |  | (117 | )
Non-current deferred tax liabilities |  |  | (2,780 | ) |  |  | (1,153 | )
Net deferred tax assets (liabilities) |  | $ | (1,939 | ) |  | $ | (578 | )
As of December 31, 2011, the Company had estimated US net operating loss carryforwards of approximately $32.4 million, expiring in various amounts in 2021 through 2030. The ability to utilize net operating losses and other tax attributes could be subject to a significant limitation if the Company were to undergo an "ownership change" for purposes of Section 382 of the Tax Code. The Company's corporate organizational structure requires the filing of two separate consolidated US Federal income tax returns. As a result, taxable income of one group cannot be offset by tax attributes, including net operating losses of the other group. As of December 31, 2011, one group had a net operating loss carry forward and other net deferred tax assets of approximately $19.5 million. The Company has considered all available evidence, both positive and negative, to determine whether, a valuation allowance is necessary. Based upon the Company's assessment, a valuation allowance of $19.5 million was recorded because the deferred tax assets may not be realized. The Company has not calculated US taxes on un-remitted earnings of certain non-US subsidiaries due to the Company's intent to reinvest the un-remitted earnings of the non-US subsidiaries. At December 31, 2011, the Company had approximately $3.2 million in unremitted earnings outside the US which were not included for US tax purposes. US income tax liability would be incurred if these funds were remitted to the US. It is not practicable to estimate the amount of the deferred tax liability on such un-remitted earnings. The Company has performed an evaluation and concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements. The evaluation was performed for the tax years which remain subject to examination by tax jurisdictions as of December 31, 2011 which are the years ended December 31, 2008 through December 31, 2011 for U.S federal taxes and years ended December 31, 2007 through December 31, 2011 for state tax jurisdictions. The Company's policy is to record penalties related to income tax matters as income tax expense.

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- 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 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: 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 Reference 6: 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 7: 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 8: 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=6881521&loc=d3e23780-122690 + Details
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