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Income Taxes
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3 Months Ended |
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Mar. 31, 2012
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| Income Taxes [Abstract] | |
| Income Taxes |
6. Income Taxes During 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 was that the Company was in a three-year historical cumulative loss as of the end of the fourth quarter of fiscal 2011 and expects to continue to be in a three year cumulative loss through the near term. After considering the Company's history of losses and management's expectation of additional near-term losses during 2011, 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 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 continues 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. During the three months ended March 31, 2012, the Company's unrecognized tax benefits increased by $40. 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 March 31, 2012.
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