XML 56 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Tax
6 Months Ended
Jul. 28, 2012
Income Tax

Note 8. Income Tax

The income tax provision for the three and six months ended July 28, 2012 included the current income tax liability of $5.9 million and $8.6 million, respectively, which were primarily offset by net reductions in unrecognized tax benefits of $3.4 million in the three months ended July 28, 2012 and $6.0 million in the six months ended July 28, 2012. These net reductions in unrecognized tax benefits primarily arose from the expiration of statute of limitations and from the settlement of an audit in non-U.S. jurisdictions less increases in current unrecognized tax benefit estimates.

The income tax provision for the three and six months ended July 30, 2011 included the current income tax liability of $4.9 million and $8.3 million, respectively, which were partially offset by a net reduction in unrecognized tax benefits of $1.0 million in the three months ended July 30, 2011 and $3.4 million in the six months ended July 30, 2011 primarily due to the expiration of the statute of limitations in non-U.S. jurisdictions less increases in current unrecognized tax benefit estimates.

During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits could decrease due to a potential settlement with tax authorities and/or the expiration of applicable statutes of limitations. However, the amount cannot be reasonably estimated as the Company will have negotiations with various tax authorities throughout the year.