9. OTHER INCOME AND EXPENSE Other income and expense consists of the following (in thousands):
2012
Interest income Interest expense
Foreign currency gain (loss), net Other income (expense), net
$
10. INCOME TAXES Components of earnings (loss) before income taxes are as follows (in thousands):
2012
Domestic operations Foreign operations
The provision (benefit) for income taxes consists of the following (in thousands): 2012
Current: Federal Foreign State
Deferred: Federal Foreign State
$ $ (392) $
4,239 455
(5,195) 656
(540) (777) $ 2011 12 $
6,818 164
(177) (331) (92)
6,394 $ 2010 -
3,699 30
(815)
(4,112) (122)
(1,320)
Reconciliations of expected tax expense (benefit) at the U.S. statutory rate to actual tax expense (benefit) are as follows (in thousands):
2012
Expected tax expense (benefit) State taxes, net of federal effect Foreign taxes, net of federal credits Change in valuation allowance
Return to provision and tax reserve adjustments (including Brazil tax settlement in fiscal 2010)
Foreign losses not benefited Other permanent items
Actual tax expense (benefit) $ $ 38 $
(170) (751) (201)
(286) 206 387
(777) $ 2011
4,501 $ (32)
(227) 908
246 771 227
6,394 $ 2010
(3,176) (255) (76) 181
759
1,042 205
(1,320)
No valuation allowance has been recorded for the domestic federal NOL. The Company believes that forecasted future taxable income and certain tax planning opportunities eliminate the need for any valuation allowance.
Conversely, a valuation allowance was provided on certain state NOLs in 2006 as a result of much shorter carryforward periods and the uncertainty of generating adequate taxable income at the entity and state level. This valuation allowance has remained through fiscal 2012. Similarly, a valuation allowance has been provided on certain foreign NOLs due to the uncertainty of generating future taxable income in those jurisdictions. Lastly, a valuation allowance has been provided for foreign tax credit carryforwards due to the uncertainty of generating sufficient foreign source income in the future. The need for any valuation allowance on the domestic federal NOL and the continued need for allowance on state and foreign NOLs and tax credits is reevaluated as facts and assumptions change over time.
30 B30
$ $
(14,614) $ 14,725
111 $ 2011 (413) $ 13,652 13,239 $ 2010
(7,295) (2,046)
(9,341) $ 916 $ (712)
1,442 315
1,961 $ 2011
1,495 $ (257) (748) 349
839 $ 2010 334
(484) (67) 322
105
10-K
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