Income Taxes Foreign Currency Revenue Recognition Financial Results 45 Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the product price is fixed or determinable, collection of the resulting receivable is reasonably assured, and product returns are reasonably  estimable. For product sales, revenue is generally recognized upon shipment of the product to our customer in accordance  with the title transfer terms of the sales agreement, generally FOB shipping point. In the case of consigned inventory, revenue  is recognized when the end customer assumes ownership of the product. Contracts that contain multiple deliverables are evaluated to determine the units of accounting, and the consideration from the arrangement is allocated to each unit of accounting based on the relative selling price and corresponding terms of the contract. We use vendor-specific objective evidence of selling price. When this evidence is not available, we are generally not able to determine third-party evidence of selling price because of the extent of customization among competing products or services from other companies. We  record revenue associated with installation services when all contractual obligations are complete. In instances where customer  acceptance is required, revenue is deferred until all acceptance criteria have been met. Contracts that include both installation  services and product sales are evaluated for revenue recognition in accordance with contract terms. As a result, depending on  contract terms, installation services may be considered a separate deliverable or may be considered a combined single unit of  accounting with the delivered product. Generally, either the purchaser, ADTRAN, or a third party can perform the installation  of our products. Shipping fees are recorded as revenue and the related cost is included in cost of sales. Sales taxes invoiced to  We record transactions denominated in foreign currencies on a monthly basis using exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are translated at the balance sheet dates using the closing rates of exchange between those foreign currencies and the U.S. dollar with any transaction gains or losses reported in other income (expense). Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income (loss). We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that the  positions become uncertain. We adjust these reserves, including any impact on the related interest and penalties, as facts and  circumstances change. The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes.  Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the  current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax bases of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted.  Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. 2012 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $8,895 $(3,469) $5,426 Reclassification adjustment for amounts included  in net income (8,980) 3,502 (5,478) Defined benefit plan adjustments (1,952) — (1,952) Foreign currency translation adjustment 170 — 170 Total Other Comprehensive Income (Loss) $(1,867) $33 $(1,834) 2011 (In thousands) Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Unrealized gains (losses) on available-for-sale securities $(11,121) $4,337 $(6,784) Reclassification adjustment for amounts included  in net income (11,325) 4,417 (6,908) Foreign currency translation adjustment (154) — (154) Total Other Comprehensive Income (Loss) $(22,600) $8,754 $(13,846)