Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

INCOME TAXES

NOTE K — INCOME TAXES

The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

Loss before income taxes from continuing operations are comprised as follows:

		September 30,
	Nine Months Ended Septmber 30, 2010
Domestic	$	(6,523	)
Foreign		(2,283	)
Total	$	(8,806	)

The Company’s provision for income taxes from continuing operations is comprised of:

		September 30,
	September 30, 2010
Current Provision	$	1
Domestic		—
Foreign
Total Current Provision		1
Deferred Provision		—
Domestic		—
Foreign
Total Deferred Provision		—
Total tax provision	$	1

The Company’s provision for income taxes differs from the anticipated United States federal statutory rate. Differences between the statutory rate and the Company’s provision are as follows:

		September 30,
	Septmber 30, 2010
Taxes at statutory rate		34.0	%
State taxes, net of federal benefit		—
Impact of international operations		(0.1	)
Other permanent differences		44.1
Valuation allowance		(78.0	)
Income taxes		—	%

As of December 31, 2010, the Company has provided for U.S. tax on foreign earnings of approximately $25,475 that is expected to be repatriated. In anticipation of the repatriation, the NOL carryforwards are no longer included in the deferred tax assets. Income taxes related to repatriation of cash held in foreign countries is not expected to exceed $350 as included in the estimated costs for liquidation. As of December 31, 2010, the fair value of net deferred tax assets is zero due to full valuation allowance.

As of December 31, 2011, foreign earnings of $13,757 has been successfully repatriated and income tax payments of $200 has been made. The Company has reviewed all available information and has determined that there does not appear to have been an “ownership change” within the meaning of Section 382 of the Internal Revenue Code. If the Company has a change prior to the repatriation of foreign earnings, the Company’s ability to utilize its net operating loss and foreign tax credit carryovers to offset U.S. tax on the foreign earnings may be significantly limited.

As of December 31, 2010 and 2011, the Company had no unrecognized tax benefits. For the year ended December 31, 2011, there was no interest or penalties recorded.

In Belgium, the Company is still open to examination by the Belgian tax authorities from 2008 forward. In the United States, the Company is still open to examination from 2008 forward, although carryforward tax attributes that were generated prior to 2008 may still be adjusted upon examination by the U.S. tax authorities if they either have been or will be utilized.