Deferred
income tax assets and liabilities at December 31, 2005 and 2004 consisted of the
following temporary differences and carry-forward items (in thousands): 
The
current deferred income tax balances are not netted as they represent deferred
amounts applicable to different taxing jurisdictions. Deferred income tax balances
reflect the effects of temporary differences between the carrying amounts of assets
and liabilities and their tax bases and are stated at enacted tax rates expected
to be in effect when taxes are actually paid or recovered. The
Company has not provided U.S. deferred income taxes or foreign withholding taxes
on the undistributed earnings of its non-U.S. subsidiaries since these earnings
are intended to be reinvested indefinitely in operations outside the United States,
in accordance with APB No. 23. It is not practical to estimate the amount of additional
taxes that might be payable on such undistributed earnings. As
of December 31, 2005, the Company has net operating loss carry-forwards for U.S.
federal income tax reporting purposes totaling $438,000 and will expire in 2024
if not utilized. The Company has not provided for a valuation allowance for its
operating loss carry-forwards based on tax strategies that could be implemented
if needed to ensure that the carry-forwards are realized. The
Company has state research and development tax credit carry-forwards of approximately
$53,000 that begin to expire in 2020. In addition, the Company accrues for Income
Tax Contingencies in accordance with SFAS No. 5 Accounting for Contingencies,
when applicable. | 
