TAXES ON INCOME

3 Months Ended

Mar. 31, 2013

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 three months ended March 31, 2013 and 2012 does not include tax benefits associated with equity-based compensation expenses. As of March 31, 2013 and December 31, 2012, 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 $1,828 and $1,815 at March 31, 2013 and December 31, 2012, respectively. The Company accrues interest and penalties, relating to unrecognized tax benefits, in its provision for income taxes. At March 31, 2013 and December 31, 2012, the Company had accrued interest and penalties relating to unrecognized tax benefits of $448 and $435, respectively.