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Income Taxes
6 Months Ended
Jun. 30, 2011
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes


For the three months ended June 30, 2011 and 2010, the Company recorded a $2.4 million and $1.0 million provision for income taxes, respectively, based upon its estimated tax liability for the year. The Company's effective tax rate for the three months ended June 30, 2011 and 2010 was approximately 17.5% and 6.3%, respectively. The Company's effective income tax rate of 17.5% for the three months ended June 30, 2011 reflects the effect of a one-time $2.5 million income tax benefit resulting from a prospective change in the New Jersey income tax law enacted in the second quarter of 2011. For the six months ended June 30, 2011 and 2010, the Company recorded an $11.8 million and $1.6 million provision for income taxes, respectively, based upon its estimated tax liability for the year. The Company's effective tax rate for the six months ended June 30, 2011 and 2010 was approximately 24.9% and 6.1%, respectively. In addition to reflecting the New Jersey law change referred to above, the Company's effective income tax rate of 24.9% for the six months ended June 30, 2011 also reflects the treatment of the entire settlement from the law firm Wilmer Cutler Pickering Hale and Dorr LLP (WilmerHale) (see note 12) as a discrete event in this period. The provision for income taxes is based on federal, state and foreign income taxes.


In the fourth quarter of 2010, the Company reduced its valuation allowance against its deferred tax assets by $45.2 million and recorded a corresponding tax benefit. The Company continues to evaluate the realizability of its deferred tax assets and liabilities on a periodic basis, and will adjust such amounts in light of changing facts and circumstances including, but not limited to, future projections of taxable income, tax legislation, rulings by relevant tax authorities, the progress of ongoing tax audits, the regulatory approval of products currently under development and the extension of the patent rights relating to Angiomax. If the Company further reduces the valuation allowance on deferred tax assets in future periods, the Company would recognize additional tax benefits