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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 

Deferred income tax assets and liabilities consist of the tax effects of temporary differences related to the following (in thousands): 

<img src='content_image/201355.jpg'>

In accordance with GAAP, management has determined that it is more likely than not that a portion of its historic and current year income tax benefits will not be realized. As of September 30, 2011, the Company has maintained a valuation allowance of $39.4 million. This valuation allowance is comprised of $26.1 million related to U.S. State tax credits and $13.3 million related to foreign deferred tax assets of which $11.6 million are foreign deferred tax assets acquired from SiGe. If these benefits are recognized in a future period the valuation 

