(16) Ta x e s
The sources of (loss)/income before income taxes are presented as follows:
Year Ended December 31,
2 0 0 0 1 9 9 9 1 9 9 8
(in thousands)
United States $ (30,227) $ ( 1 9 , 8 6 6 ) $ ( 8 , 9 8 5 )
Netherlands Antilles — . 77. 7 00.
E u ro p e ( 1 8 , 1 3 6 ) ( 1 8 , 0 6 8 ) ( 2 1 , 5 4 9 )
Loss before income taxes $ ( 4 8 , 3 6 3 ) $ ( 3 7 , 8 5 7 ) $( 2 9 , 8 3 4 )
Total income tax benefit/(expense) for the years ended December 31, 2000, 1999 and 1998 was allocated as follows:
Year Ended December 31,
2 0 0 0 1 9 9 9 1 9 9 8
(in thousands)
Loss from continuing operations $ ( 1 , 1 8 8 ) $ 4 , 1 8 2 $ ( 1 , 4 3 0 )
E x t r a o rd i n a ry item — . — . ( 1 , 4 8 8 )
Stockholders’ (deficit)/equity for 
compensation expense for tax purposes 
in excess of amounts recognized for 
financial re p o rting purposes — . — . 9 51.
$ ( 1 , 1 8 8 ) $ 4 , 1 8 2 $ ( 1 , 9 6 7 )
The income tax benefit/(expense) from operations consisted of the following:
Year Ended December 31,
2 0 0 0 1 9 9 9 1 9 9 8
(in thousands)
C u rrent tax (expense)/benefit:
U.S. Federal $ ( 8 3 8 ) $ 1 , 8 2 8 $ ( 1 , 4 3 0 )
E u ro p e ( 3 5 0 ) — . — .
Total curre n t ( 1 , 1 8 8 ) 1 , 8 2 8 ( 1 , 4 3 0 )
D e f e rred tax benefit/(expense):
U.S. Federal — . 2 , 3 5 4 — .
Total deferre d — . 2 , 3 5 4 — .
Total tax benefit/(expense) $ ( 1 , 1 8 8 ) $ 4 , 1 8 2 $ ( 1 , 4 3 0 )
Year Ended December 31,
2 0 0 0 1 9 9 9 1 9 9 8
(in thousands)
Income tax benefit at statutory rates $ 1 6 , 4 4 3. $ 1 1 , 9 33. $ 1 0 , 1 43.
P e rmanent diff e re n c e s ( 1 8 6 ) 1 , 0 78. ( 1 , 1 9 1 )
Tax-exempt intere s t — . — . 5 20.
Stock options exerc i s e d — . — . ( 9 3 1 )
Tax rate diff e re n c e s ( 1 , 7 5 7 ) ( 9 3 8 ) ( 6 3 8 )
Adjustment to deferred tax asset for 
enacted changes in tax rates ( 1 , 9 0 9 ) ( 4 4 3 ) ( 1 9 1 )
(Expiration)/utilization of tax loss 
c a rried forw a rd ( 7 1 6 ) ( 1 , 7 0 0 ) 9 7 1.
O t h e r ( 2 , 1 1 5 ) 1 7 6. ( 1 7 5 )
Change in valuation allowance ( 1 0 , 9 4 8 ) ( 5 , 9 2 4 ) ( 9 , 9 3 8 )
Actual income tax benefit/(expense) $ ( 1 , 1 8 8 ) $ 4 , 1 82. $ ( 1 , 4 3 0 )
As a result of the formation of the Company a portion of the stock compensation cost re c o rded in 1996 became a temporary diff e rence for
which the Company recognized a gross deferred tax asset of $1.4 million in 1997. A valuation allowance for this deferred tax asset was
established. During 1997, certain of the stock options were exercised resulting in a tax deduction of $1.0 million. Because of the tax loss
position of the Company in 1997 in the United States, this tax deduction was not utilized and increased the tax loss carr y f o rw a rd. The
Company established a valuation allowance for the deferred tax asset resulting from the tax loss carry f o rw a rd in the United States. This tax
loss carry f o rw a rd was utilized in 1998 and there f o re, $951,553 of the tax benefit was re c o rded as an adjustment to additional paid in capital. 
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