Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes

(11) Income Taxes

The income tax provision for the three months ended March 31, 2012 and 2013 was $1.4 million and $2.5 million, respectively. The change is primarily due to the increase in income before income taxes. The tax provision for the three months ended March 31, 2013 includes a discrete item of $0.3 million in 2012 Federal R&D tax credits that were retroactively reinstated by Congress in 2013. The Company provides for income taxes using an asset and liability approach, under which deferred income taxes are provided based upon enacted tax laws and rates applicable to periods in which the taxes become payable.

The Company is subject to income taxes in the U.S. federal and various state jurisdictions. Presently, there is no income tax examination going on in the jurisdictions where the Company operates.

As of March 31, 2013, the Company remains in a net deferred tax asset position. The realization of the Company’s deferred tax assets depends primarily on its ability to generate sufficient U.S. taxable income in future periods. The amount of deferred tax assets considered realizable may increase or decrease in subsequent quarters as management reevaluates the underlying basis for the estimates of future domestic taxable income.