Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2012

Prepaid Expenses and Other Current Assets

7. Prepaid Expenses and Other Current Assets

Prepaids and other current assets as of June 30, 2012, and December 31, 2011, consisted of the following (in thousands):

	June 30, 2012		December 31, 2011
Prepaid income taxes	$	2,599	$	1,984
Survey participant incentives and prepaid postage		2,179		1,770
Insurance recovery receivables		484		993
Other		2,621		2,394
Prepaids and other current assets	$	7,883	$	7,141

Insurance recovery receivables. During 2008, the Company became involved in two securities-law civil actions and a governmental interaction primarily related to the commercialization of the Company’s PPM service. The management of the Company believes a portion of the legal fees and costs associated with this litigation are covered by the Company’s Directors and Officers insurance policy and therefore has recognized an insurance recovery receivable. On February 3, 2012, as a result of a mediation process overseen by an independent mediator, the Company and its insurers agreed to settle the class action for $7.0 million, which was funded by insurance. From 2008 until June 30, 2012, the Company had incurred approximately $12.6 million in legal fees and costs in defense of its positions related thereto, and as of June 30, 2012, the Company had received $9.2 million in insurance reimbursements related to these legal actions. From 2008 until December 31, 2011, the Company had incurred approximately $12.1 million in legal fees and costs in defense of its positions related thereto, and as of December 31, 2011, the Company had received $7.9 million in insurance reimbursements.

For the six-month periods ended June 30, 2012, and 2011, the Company incurred approximately $0.6 million, and $0.6 million, respectively, in related legal fees, which were recognized as increases to selling, general, and administrative expense. These legal fees were offset by $0.8 million, and $0.8 million in estimated insurance recoveries, which were recognized as reductions to selling, general and administrative expense during 2012 and 2011, respectively.