Using adaptive mesh refinement (AMR) hydrodynamic simulations of vertically stratified hot halo gas, we examine the conditions under which clouds can form and condense out of the hot halo medium to potentially fuel star formation in the gaseous disk. We find that halo clouds do not develop from linear isobaric perturbations. This is a regime where the cooling time is longer than the Brunt-Vaisala time, confirming previous linear analysis. We extend the analysis into the nonlinear regime by considering mildly or strongly nonlinear perturbations with overdensities up to 100, also varying the initial height, the cloud size, and the metallicity of the gas. Here, the result depends on the ratio of cooling time to the time required to accelerate the cloud to the sound speed (similar to the dynamical time). If the ratio exceeds a critical value near unity, the cloud is accelerated without further cooling and gets disrupted by Kelvin-Helmholtz and/or Rayleigh-Taylor instabilities. If it is less than the critical value, the cloud cools and condenses before disruption. Accreting gas with overdensities of 10-20 is expected to be marginally unstable; the cooling fraction will depend on the metallicity, the size of the incoming cloud, and the distance to the galaxy. Locally enhanced overdensities within cold streams have a higher likelihood of cooling out. Our results have implications on the evolution of clouds seeded by cold accretion that are barely resolved in current cosmological hydrodynamic simulations and absorption line systems detected in galaxy halos.

13 pages, 8 figures, submitted to ApJ