Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

10. INCOME TAXES

The Company is subject to income taxes in the US and Malaysia. In accordance with the provisions of ASC Topic 740 "Income Taxes", the Company assesses on a quarterly basis its ability to realize its deferred tax assets. During the nine months ended September 30, 2011, the Company concluded that based on the current level of sustainable profitability that generates taxable income, that it is more likely than not that the Company's deferred tax assets will be realizable. The Company recognized a tax benefit of $3.3 million to record current and long-term deferred tax assets. With the release of the valuation allowance, the Company began recording federal and certain state and non-US income taxes attributable to the fiscal year's pre-tax income. The tax provision and usage of net operating losses is based on an estimated effective tax rate which requires the Company to make its best estimate of annual pretax income. During the three months ended September 30, 2011 changes to these projections resulted in a change in the amount of stock compensation tax benefits that can be recognized in 2011. As a result, adjustments were made to excess tax benefits from stock-based compensation charged to additional paid in capital and timing on recognizing deferred tax liabilities. The Company recorded for the three and nine months ended September 30, 2011, a tax provision of $3.6 million and $18.3 million, respectively, for an effective tax rate of 30.4% and 32.9%.