12.

Income Taxes

The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely. The Company recorded income tax expense (benefit) of $(0.4) million and $0.2 million for the three months ended March 31, 2014 and 2013, respectively. The income tax benefit recorded in 2014 relates primarily to the recognition of deferred tax assets recognized that are attributable to foreign losses. The income tax expense amount in 2013 was primarily attributable to foreign and state income taxes.

Factors that impact the income tax provision include, but are not limited to, stock-based compensation expense, permanent tax adjustments, foreign operations and a valuation allowance against the Company’s deferred tax assets.