Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.3.0.15
Income Taxes
9 Months Ended
Sep. 30, 2011
Income Taxes [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 24%.

 

As of December 31, 2010, the Company's gross deferred tax asset was $91,031. The Company has recorded a valuation allowance, resulting in a net deferred tax asset of $69,527, excluding deferred tax liabilities. Management has provided a valuation allowance against some of the net deferred income tax assets as of December 31, 2010, because the ultimate realization of those benefits and assets does not meet the more likely than not criteria.

 

As of December 31, 2010, the Company had net operating loss, research and experimentation credit and alternative minimum tax credit carryforwards for U.S. federal income tax purposes of $226,837, $1,501 and $56, respectively. The Company's ability to benefit from certain net operating loss and tax credit carryforwards is limited under Section 382 of the Internal Revenue Code, as amended (the "Code"), due to a prior ownership change of greater than 50%. The 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 $225,786 of net operating losses available to offset taxable income, $214,160 does not expire until 2020 or later, subject to compliance with Section 382 of the Code as indicated by the following schedule:

Net Operating Carryforward Expiration Dates

December 31, 2010

 

Expiration Dates        December 31,

 

Net Operating Loss       Amount

 

2011

 

 $          7,520

 

2012

 

5,157

 

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

 

2,302

 

Total

 

226,837

 

Section 382 Limitation

 

(1,051)

 

After Limitations

 

 $      225,786