Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.6
Income Taxes
9 Months Ended
Sep. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 14.  INCOME TAXES 

 

The Company’s foreign operations that are considered to be permanently reinvested have an effective tax rate of approximately 25%. 

 

As of December 31, 2011, the Company’s gross deferred tax asset was $92,251.  The Company has recorded a valuation allowance, resulting in a net deferred tax asset of $73,747,  excluding deferred tax liabilities.  Management has provided a valuation allowance against some of the net deferred income tax assets as of December 31, 2011, because the ultimate realization of those benefits and assets does not meet the more likely than not criteria.  During the three and nine months ended September 30, 2012, the Company reversed $530 of the Company’s valuation allowance on the Company’s deferred tax asset as it was determined to be more likely than not that the related deferred tax asset would be realized. 

 

As of December 31, 2011, the Company had net operating loss, research and experimentation credit and alternative minimum tax credit carryforwards for U.S. federal income tax purposes of $217,822 ($725 relates to tax windfall, which will not be realized until an income tax payable exists), $1,693 and $261, respectivelyThe Company believes its U.S. Federal net operating loss (“NOL”) will substantially offset its future U.S. Federal income taxes, excluding the amount subject to U.S. Federal Alternative Minimum Tax (“AMT”).  AMT is calculated as 20% of AMT income.  For purposes of AMT, a maximum of 90% of income is offset by available NOLs.  The majority of the Company’s pre-tax income is currently earned and expected to be earned in the U.S., or taxed in the U.S. as Subpart F. income and will be offset with the NOL. 

 

 

 

 

 

 

 

 

 

 

 

 

 

Of the $217,097 of net operating losses available to offset taxable income, $215,538 does not expire until 2020 or later, subject to compliance with Section 382 of the Internal Revenue Code, as amended (the “Code”) as indicated by the following schedule: 

 

 

 

 

 

 

Net Operating Loss Carryforward Expiration Dates

December 31, 2011

 

 

 

 

Expiration Dates
December 31,

 

Net Operating Loss Amount

2012

 

$

1,559 

2020

 

 

29,533 

2021

 

 

50,430 

2022

 

 

115,000 

2023

 

 

5,712 

2024

 

 

3,566 

2025

 

 

1,707 

2026

 

 

476 

2028

 

 

1,360 

2029

 

 

4,074 

2030

 

 

4,405 

Total

 

 

217,822 

Tax windfall

 

 

(725)

After limitations

 

$

217,097