2.2.0.7 false Income Taxes 10501 - Disclosure - Income Taxes true false false false 1 USD false false Unit12 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit13 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Unit1 Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Income Taxes [Abstract] 0 nihd_IncomeTaxesAbstract nihd false na duration Income Taxes [Abstract] false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Income Taxes [Abstract] false 3 Income Taxes 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div> <div> <div> <h5 align="left"> </h5> <div> <h5 align="left"> </h5> <div style="margin-left: 6%; width: 87%;"> <table style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr valign="top"><td><b><font class="_mt" style="font-family: 'Times New Roman', Times;">Note 5.  </font></b> </td> <td><b><font class="_mt" style="font-family: 'Times New Roman', Times;">Income Taxes</font></b> </td></tr></table> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We are subject to income taxes in both the United States and the <font class="_mt" style="white-space: nowrap;">non-U.S. jurisdictions</font> in which we operate. Certain of our entities are under examination by the relevant taxing authorities for various tax years. The earliest years that remain subject to examination by jurisdiction are: Chile — 1993; U.S. — 1999; Argentina and Mexico — 2003; Peru and Brazil — 2005. We regularly assess the potential outcome of current and future examinations in each of the taxing jurisdictions when determining the adequacy of the provision for income taxes.</div></div></div></div></div> <div style="margin-left: 6%; width: 87%;"> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The following table shows a reconciliation of our unrecognized tax benefits according to the FASB's authoritative guidance on accounting for uncertainty in income taxes, for the nine months ended September 30, 2010 (in thousands): </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr style="font-size: 1pt;" valign="bottom"><td width="90%"> </td> <td width="2%"> </td> <td align="right" width="1%"> </td> <td align="right" width="6%"> </td> <td align="left" width="1%"> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Unrecognized tax benefits — December 31, 2009 </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">99,596 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Additions for current year tax positions </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">9,665 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Additions for prior year tax positions </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Reductions for current year tax positions </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(5,737 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Reductions for prior year tax positions </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(5,117 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Lapse of statute of limitations </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(523 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Settlements with taxing authorities </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(909 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Foreign currency translation adjustment </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,167 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Unrecognized tax benefits — September 30, 2010 </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">100,142 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The unrecognized tax benefits as of December 31, 2009 and September 30, 2010 include $75.7 million and $73.6 million, respectively, of tax benefits that could potentially reduce our future effective tax rate, if recognized. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We record interest and penalties associated with uncertain tax positions as a component of our income tax provision. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We assessed the realizability of our deferred tax assets during the third quarter of 2010, consistent with the methodology we employed for 2009, and determined that, in general, the realizability of those deferred assets has not changed for the markets in which we operate. In that assessment, we considered the reversal of existing temporary differences associated with deferred tax assets and liabilities, future taxable income, tax planning strategies and historical and future pre-tax book income (as adjusted for permanent differences between financial and tax accounting items) in order to determine if it is "more-likely-than-not" that the deferred tax asset will be realized. Due to an increase in the amount of projected U.S. taxable income, we were able to release a portion of our U.S. valuation allowance. We will continue to evaluate the deferred tax asset valuation allowance balances in all of our foreign and U.S. companies throughout 2010 to determine the appropriate level of valuation allowance. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">During the first quarter of 2010, we changed our position regarding the repatriation of current foreign earnings back to the United States. We anticipate recording a U.S. federal, state and foreign tax provision during 2010 with respect to future remittances of certain undistributed earnings of our subsidiaries in Mexico. As of September 30, 2010, we recorded a $61.4 million provision for U.S. federal, state and foreign taxes on these future remittances of current year earnings. We continue to indefinitely reinvest all other remaining undistributed earnings of our foreign subsidiaries outside the United States. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: none transparent scroll repeat 0% 0%; margin-left: 0%; color: #000000; text-indent: 4%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">During 2004, Nextel Mexico amended its Mexican Federal income tax returns in order to reverse a benefit previously claimed for a disputed provision of the Federal income tax law covering deductions and gains from the sale of property. We filed the amended returns in order to avoid potential penalties, and we also filed administrative petitions seeking clarification of our right to the tax benefits claimed on the original income tax returns. The tax authorities constructively denied our administrative petitions in January 2005, and in May 2005 we filed an annulment suit challenging the constructive denial. Resolution of the annulment suit is pending. We believe it is probable that we will recover this amount. Our condensed consolidated balance sheets as of September 30, 2010 and December 31, 2009 include $13.9 million and $13.3 million, respectively in income taxes receivable, which are included as components of other non-current assets. The income tax benefit for this item was related to our income tax provision for the years ended December 31, 2005, 2004 and 2003.</div></div> </div> Note 5.   Income Taxes   We are subject to income taxes in both the United States and the non-U.S. jurisdictions in which we false false false us-types:textBlockItemType textblock Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. 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