Taxes on Income

6 Months Ended

Jun. 30, 2012

Taxes on Income [Abstract]

TAXES ON INCOME

NOTE E—TAXES ON INCOME

The effective tax rate used in computing the provision for income taxes is based on projected fiscal year income before taxes, including estimated income by tax jurisdiction. Tax provision for the six months ended June 30, 2012 and 2011 does not include tax benefits associated with equity-based compensation expenses. As of June 30, 2012 and December 31, 2011, the Company did not record any significant changes to its deferred tax assets due to its current estimation of future taxable income.

The total amount of net unrecognized tax benefits was $1,115 at both June 30, 2012 and December 31, 2011. The Company accrues interest and penalties, relating to unrecognized tax benefits, in its provision for income taxes. At both June 30, 2012 and December 31, 2011, the Company had accrued interest and penalties relating to unrecognized tax benefits of $276.