INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

Current and Deferred Income Tax Provision

The current and deferred income tax provision was as follows (in thousands):

	Year Ended December 31,
	2011			2010		2009
Current:
Federal	$	12		$	194	$	153
State		140			351		356
Foreign		—			—		—
		152			545		509
Deferred:
Federal		(6,002	)		—		—
State		—			1		4
Foreign		238			406		(156	)
		(5,764	)		407		(152	)
Net income tax provision	$	(5,612	)	$	952	$	357

Reconciliation of the Effect of Applying Federal Statutory Rate and Effective Income Tax Rate on Income Tax Provision

A reconciliation of the effect of applying the federal statutory rate and the effective income tax rate on our income tax provision is as follows:

	Year Ending December 31,
	2011			2010			2009
Federal income tax at statutory rates		(34	)%		(34	)%		(34	)%
Goodwill impairment		—			—			24
Foreign income tax (benefit)		6			(10	)		—
Stock-based compensation		—			—			1
State income tax		(3	)		8			—
Other permanent differences		4			2			—
Statutory tax rate change		2			3			—
Compensation		2			7			—
Change in valuation allowance		(49	)		55			8
Effective tax rate		(72	)%		31	%		(1	)%

Temporary Differences Between Financial Statement Carrying Amounts and Tax Bases of Assets and Liabilities that Give Rise to Significant Portions of Deferred Taxes

Temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities that give rise to significant portions of deferred taxes related to the following (in thousands):

	December 31,
	2011			2010
Current deferred income tax assets:
Provision for doubtful accounts	$	3,691		$	2,211
Accrued compensation		1,251			1,470
Other accrued expenses		45			186
Deferred revenue		758			1,200
Restructuring liability		1,029			1,023
Other		116			115
Current deferred income tax assets		6,890			6,205
Less: valuation allowance		(6,890	)		(6,205	)
Net current deferred income tax assets		—			—
Long-term deferred income tax assets:
Property and equipment		36,093			32,009
Goodwill		4,790			5,257
Intangible assets		(2,605	)		4,538
Deferred revenue, less current portion		779			752
Restructuring liability, less current portion		1,856			2,004
Deferred rent		6,304			6,566
Stock-based compensation		1,660			1,417
U.S. net operating loss carryforwards		60,972			72,898
Foreign net operating loss carryforwards, less current portion		3,650			4,254
Capital loss carryforwards		2,271			2,271
Tax credit carryforwards		968			915
Other		1,881			2,046
Long-term deferred income tax assets		118,619			134,927
Less: valuation allowance		(116,523	)		(132,488	)
Net long-term deferred income tax assets		2,096			2,439
Net deferred tax assets	$	2,096		$	2,439

Changes in Deferred Tax Asset Valuation Allowance

Changes in our deferred tax asset valuation allowance are summarized as follows (in thousands):

	Year Ended December 31,
	2011			2010		2009
Balance, January 1,	$	138,693		$	128,978	$	124,755
(Decrease) increase in deferred tax assets		(15,279	)		9,715		4,223
Balance, December 31,	$	123,414		$	138,693	$	128,978

Changes in Unrecognized Tax Benefits

Changes in our unrecognized tax benefits are summarized as follows (in thousands):

	Year Ended December 31,
	2011		2010		2009
Unrecognized tax benefits balance, January 1,	$	—	$	—	$	—
Additions for tax positions of current year		283		—		—
Foreign exchange (loss)		—		—		—
Lapse of statute of limitations		—		—		—
Unrecognized tax benefits balance, December 31,	$	283	$	—	$	—