5.	Income Taxes

During the three months ended September 30, 2014, we recorded foreign deferred tax expense of $10. During the nine months ended September 30, 2014, we recorded foreign deferred tax benefits of $33. During the three and nine months ended September 30, 2013, we recorded foreign deferred tax benefits of $127 and $786, respectively. The foreign deferred tax benefits are associated with certain Canadian research and development and investment tax credits. The income tax benefits associated with DNAG are considered realizable based upon the estimated scheduled reversal of the deferred tax liabilities recorded in connection with the acquisition of DNAG.

Deferred income taxes reflect the tax effects of temporary differences between the basis of assets and liabilities recognized for financial reporting and tax purposes, and net operating loss and tax credit carryforwards. The significant components of our total deferred tax liability as of September 30, 2014 relate to the tax effects of the basis differences between the intangible assets acquired in the DNAG acquisition for financial reporting and tax purposes.

In 2008, we established a full valuation allowance against our U.S. net deferred tax asset, and management believes the full valuation allowance is still appropriate as of September 30, 2014 and December 31, 2013 since the facts and circumstances necessitating the allowance have not changed. As a result, no U.S. federal or state income tax benefit was recorded for the three and nine month periods ended September 30, 2014 and 2013.