Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Income Taxes [Abstract] | |
| Income Taxes |
7. Income Taxes As of September 30, 2011, the Company evaluated its net deferred income tax assets, including an assessment of the cumulative income or loss over the prior three-year period and future periods, to determine if a valuation allowance is required. A significant negative factor in the Company's assessment at September 30, 2011 was the expectation that the Company may be in a three-year historical cumulative loss as of the end of the fourth quarter of fiscal 2011 and through the near term, as profitable quarters in the earlier years are removed from the rolling three-year calculation. After considering the Company's recent history of losses and management's expectation of additional near-term losses, the Company recorded a valuation allowance on its net federal deferred tax assets, with a corresponding charge to its income tax provision, of approximately $8.2 million in the quarter ended September 30, 2011. In addition, the Company continues to maintain a valuation allowance to offset the California deferred tax assets as realization of such assets does not meet the more-likely-than-not threshold required under accounting guidelines. The Company will continue to assess the need for a valuation allowance on the deferred tax asset by evaluating both positive and negative evidence that may exist. The provision for income taxes differs from the federal statutory rate primarily due to the establishment of a valuation allowance against the Company's net federal deferred tax asset in the third quarter of 2011. During the three and nine months ended September 30, 2011, the Company's unrecognized tax benefits remained unchanged. The Company does not anticipate its unrecognized tax benefits will change significantly over the next 12 months. There were no accrued interest and penalties associated with uncertain tax positions as of September 30, 2011. |