Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes

Income Taxes

(10)  Income Taxes

We are subject to income taxes in both the United States and the non-U.S. jurisdictions in which we operate. Income tax expense (benefit) for the three-month month periods ended March 31, 2013 and 2012 consisted of the following:

	Three Months Ended
	March 31,
	2013			2012
	(Dollars in thousands)
U.S. state current income tax expense (benefit)	$	(56	)	$	177
Foreign current income tax expense	2			89
Foreign deferred income tax expense (benefit)	(21		)	566
Total	$	(75	)	$	832

The Company recognizes deferred tax assets and liabilities in both the U.S. and foreign jurisdictions based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for net operating loss and tax credit carryforwards. Deferred income tax assets and liabilities attributable to our consolidated foreign operations were not significant at March 31, 2013 and December 31, 2012. However, the Company has a substantial amount of U.S. deferred tax assets attributable primarily to net operating loss carryforwards for U.S. federal income tax purposes, and differences between the carrying amounts and the tax bases of Acquisition Partnership investments. At March 31, 2013 and December 31, 2012, the Company established a full valuation allowance for its U.S. deferred tax assets due to the lack of sufficient objective evidence regarding the realization of these assets in the foreseeable future. We will continue to evaluate the deferred tax asset valuation allowance balances in all of our U.S. and foreign subsidiaries throughout 2013 to determine the appropriate level of valuation allowances.