Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

Income Taxes

(11)  Income Taxes

We are subject to income taxes in both the United States and the non-U.S. jurisdictions in which we operate. Income tax expense (benefit) for the three- and six-month month periods ended June 30, 2012 and 2011 consisted of the following:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012		2011
	(Dollars in thousands)
U.S. state current income tax expense (benefit)	$	125		$	70		$	303	$	(297	)
Federal current income tax benefit	—			137			—		137
Foreign current income tax expense	251			1,412			340		1,938
Foreign deferred income tax expense (benefit)	(371		)	(595		)	195		(152		)
Total	$	5		$	1,024		$	838	$	1,626

The Company recognizes deferred tax assets and liabilities in both the U.S. and foreign jurisdictions based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for net operating loss and tax credit carryforwards. At June 30, 2012 and December 31, 2011, the Company had $0.5 million and $0.1 million of deferred foreign income tax liabilities attributable primarily to our consolidated foreign operations.

The Company also has a substantial amount of U.S. deferred tax assets attributable primarily to net operating loss carryforwards for U.S. federal income tax purposes, and differences between the carrying amounts and the tax bases of Acquisition Partnership investments. At June 30, 2012 and December 31, 2011, the Company established a full valuation allowance for its U.S. deferred tax assets due to the lack of sufficient objective evidence regarding the realization of these assets in the foreseeable future. We will continue to evaluate the deferred tax asset valuation allowance balances in all of our U.S. and foreign subsidiaries throughout 2012 to determine the appropriate level of valuation allowances.