INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

Loss Before Income Taxes and Components of Income Tax Provision

Loss before income taxes and the components of the income tax provision (benefit) consisted of the following for the years ended December 31, 2011, 2010 and 2009 (in thousands):



	2011			2010			2009
Income (loss) before income taxes:
United States	$	(31,809	)	$	1,825		$	(91,090	)
Foreign	8,960			(38,383		)	21,083
Total loss before income taxes	$	(22,849	)	$	(36,558	)	$	(70,007	)
Provision for (benefit from) income taxes:
Current tax expense (benefit):
Federal	$	627		$	(56	)	$	(1,490	)
State	48			188			89
Foreign benefit of net operating losses	(629		)	(4,211		)	(636		)
Other foreign	2,890			6,161			1,940
Total current tax expense (benefit)	2,936			2,082			(97		)
Deferred tax benefit:
Federal	—			(767		)	(7		)
Other foreign	(1,994		)	(919		)	(1,548		)
Total deferred tax benefit	(1,994		)	(1,686		)	(1,555		)
Total provision for (benefit from) income taxes	$	942		$	396		$	(1,652	)

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) consisted of the following at December 31, 2011 and 2010 (in thousands):



	2011			2010
Deferred tax assets:
Tax credit and net operating loss carryforwards	$	137,981		$	129,832
Allowances for bad debts	1,309			1,564
Difference in accounting for:
Revenue	2,576			4,973
Costs and expenses	56,204			65,942
Inventories	9,989			7,186
Acquired intangible assets	18,522			24,344
Gross deferred tax assets	226,581			233,841
Valuation allowance	(215,317		)	(217,897		)
Deferred tax assets after valuation allowance	11,264			15,944
Deferred tax liabilities:
Difference in accounting for:
Costs and expenses	(729		)	(2,760		)
Acquired intangible assets	(6,864		)	(10,813		)
Other	—			(311		)
Gross deferred tax liabilities	(7,593		)	(13,884		)
Net deferred tax assets	$	3,671		$	2,060
Recorded as:
Current deferred tax assets, net	1,480			1,068
Long-term deferred tax assets, net (in other assets)	3,996			3,460
Current deferred tax liabilities, net (in accrued expenses and other current liabilities)	(51		)	(314		)
Long-term deferred tax liabilities, net	(1,754		)	(2,154		)
Net deferred tax assets	$	3,671		$	2,060

Reconciliation of Income Tax Provision to Statutory Rate

The following table sets forth a reconciliation of the Company's income tax provision (benefit) to the statutory U.S. federal tax rate for the years ended December 31, 2011, 2010 and 2009:



	2011		2010		2009
Statutory rate	(35	)%	(35	)%	(35	)%
Tax credits	(9	)%	(9	)%	(7	)%
Foreign operations	1	%	32	%	5	%
Non-deductible expenses and other	10	%	3	%	2	%
Increase in valuation allowance	37	%	10	%	33	%
Effective tax rate	4	%	1	%	(2	)%

Reconciliation of Unrecognized Tax Benefits

The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding the impact of interest and penalties, for the years ended December 31, 2011, 2010 and 2009 (in thousands):



Unrecognized tax benefits at January 1, 2009	$	3,100
Increases for tax positions taken during a prior period	2,000
Increases for tax positions taken during the current period	—
Decreases for tax positions taken during a prior period	(2,600		)
Decreases related to settlements	(200		)
Decreases related to the lapse of applicable statutes of limitations	(300		)
Unrecognized tax benefits at December 31, 2009	2,000
Increases for tax positions taken during a prior period	—
Increases for tax positions taken during the current period	—
Decreases for tax positions taken during a prior period	(100		)
Decreases related to settlements	(100		)
Decreases related to the lapse of applicable statutes of limitations	(400		)
Unrecognized tax benefits at December 31, 2010	1,400
Increases for tax positions taken during a prior period	13,400
Increases for tax positions taken during the current period	—
Decreases for tax positions taken during a prior period	(700		)
Decreases related to settlements	(900		)
Decreases related to the lapse of applicable statutes of limitations	(400		)
Unrecognized tax benefits at December 31, 2011	$	12,800