XML 41 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
6 Months Ended
Jun. 30, 2012
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE 12-INCOME TAXES
During the three and six months ended June 30, 2012, the Company recognized an income tax benefit of $44.2 million and $44.3 million, respectively. The income tax benefit results from a reduction in the valuation allowance recorded against the Company's net deferred tax assets of $44.7 million during the three and six months ended June 30, 2012, due to deferred tax liabilities recognized for the difference between the fair value and carrying basis of certain tangible and intangible assets obtained as part of the Acquisition, which can be used as a source of income when utilizing certain domestic deferred tax assets. This income tax benefit was partially offset by an income tax provision of $0.5 million and $0.4 million, respectively, recorded during the three and six months ended June 30, 2012 which primarily consists of a provision for foreign taxes.
Due to the Company's history of cumulative operating losses, management concluded that, after considering all the available objective evidence, it is not more likely than not that all the Company's net deferred tax assets will be realized. Accordingly, all of the U.S. net deferred tax assets continue to be subject to a valuation allowance as of June 30, 2012.
As of June 30, 2012, excluding acquired unrecognized tax benefits of $2.1 million as a result of the Acquisition, there have been no material changes to the total amount of unrecognized tax benefits as compared to December 31, 2011.