INCOME TAXES

9 Months Ended

Sep. 30, 2012

INCOME TAXES

13. INCOME TAXES

The Company had federal taxable losses during the nine months ended September 30, 2012 and 2011, and, as a result, federal net operating loss carry-forwards have been generated. The US federal net operating loss carry-forwards of the Company have a full valuation allowance as management believes it is not “more-likely-than-not” that the Company will generate sufficient taxable income in future periods to recognize the losses. However, a foreign tax provision is recognized because certain international subsidiaries of the Company have profitable operations or a net deferred tax liability position. Additionally, certain of the US subsidiaries are profitable and taxable in separate return jurisdictions. A deferred state tax provision is also recognized based on the Company’s assessment that future taxable income in certain state jurisdictions will be generated to utilize deferred tax assets.