Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

INCOME TAXES

NOTE 6- INCOME TAXES

In accordance with generally accepted accounting principles, we estimate the full-year effective tax rate from continuing operations and apply this rate to our year-to-date income from continuing operations. In addition, we separately calculate the tax impact of unusual items, if any. The consolidated effective tax rate for the two months ended February 28, 2011, three and four months ended June 30, 2011 was (9.9)%, 63.6% and 246.0%, respectively, compared to 23.4% and 25.8% for the three and six months ended June 30, 2010. The fluctuations in the tax rates are principally the result of valuation allowances on losses generated in the United States and variances in withholding taxes from foreign operations as a percentage of pretax income (loss).

Income (loss) before income taxes which was subject to United States and non-United States income taxes was as follow (in thousands):

	Successor				Predecessor
	Three Months		Four Months		Two Months			Three Months			Six Months
	Ended		Ended		Ended			Ended			Ended
	June 30,		June 30,		February 28,			June 30,			June 30,
	2011		2011		2011			2010			2010
United States	$	4,422	$	1,118	$	(17,544	)	$	(13,414	)	$	(31,393	)
Outside United States		222		726		(17	)		6,395			11,306
	$	4,644	$	1,844	$	(17,561	)	$	( 7,019	)	$	( 20,087	)

The income tax provision consists of the following (in thousands):

	Successor				Predecessor
	Three Months		Four Months		Two Months		Three Months			Six Months
	Ended		Ended		Ended		Ended			Ended
	June 30,		June 30,		February 28,		June 30,			June 30,
	2011		2011		2011		2010			2010
Income tax expense (benefit):
United States	$	183	$	240	$	233	$	(4,408	)	$	(10,513	)
Outside United States		2,772		4,296		1,503		2,768			5,336
	$	2,955	$	4,536	$	1,736	$	(1,640	)	$	(5,177	)

The following table reconciles the statutory tax rates to our actual tax rate:

	Successor						Predecessor
	Three Months			Four Months			Two Months			Three Months			Six Months
	Ended			Ended			Ended			Ended			Ended
	June 30,			June 30,			February 28,			June 30,			June 30,
	2011			2011			2011			2010			2010
United States Statutory federal income tax rate		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
United States State income taxes, net of federal benefit		1.2			1.2			0.7			2.2			2.2
Non-United States income taxed at different rates		10.9			42.7			0.3			12.5			7.8
Valuation allowance, permanent differences and other		16.5			167.1			(45.9	)		(26.3	)		(19.2	)
Effective tax rate		63.6	%		246.0	%		(9.9	)%		23.4	%		25.8	%