2.2.0.7 false Income Taxes 0208 - Disclosure - Income Taxes true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 Pure Standard http://www.xbrl.org/2003/instance pure xbrli 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Income Taxes [Abstract] 0 us-gaap_IncomeTaxExpenseBenefitAbstract us-gaap true na duration No definition available. 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 No definition available. 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 verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>8. Income Taxes</b> </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Income taxes are determined using an estimated annual effective tax rate applied against income, and then adjusted for the tax impacts of certain significant and discrete items. For the six months ended June 30, 2010, the Company treated the tax impact related to the following as discrete events for which the tax effect was recognized separately from the application of the estimated annual effective tax rate: (i) sale of the Mass Spectrometry division (ii) early extinguishment of debt; (iii) benefits relating to certain prior acquisitions; and (iv) the release of reserves for uncertain tax positions upon the completion of audits by tax authorities. The Company’s effective tax rate recorded for the six months ended June 30, 2010 was 14.7%. Excluding the impact of the discrete items discussed above, the effective tax rate would have been 24.8%. </div> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the activity related to our unrecognized tax benefits: </div> <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>December 31, 2009</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>(unaudited)</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Gross unrecognized tax benefits at January 1 </div></td> <td> </td> <td align="left">$</td> <td align="right">121,644</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">74,904</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increases in tax positions for prior years </div></td> <td> </td> <td> </td> <td align="right">26,663</td> <td> </td> <td> </td> <td> </td> <td align="right">33,201</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases in tax positions for prior years </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,075</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,772</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Increases in tax positions for current year relating to ongoing operations </div></td> <td> </td> <td> </td> <td align="right">3,024</td> <td> </td> <td> </td> <td> </td> <td align="right">10,316</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Increases in tax positions for prior years relating to acquisitions </div></td> <td> </td> <td> </td> <td align="right">1,172</td> <td> </td> <td> </td> <td> </td> <td align="right">18,529</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases in tax positions for current year relating to acquisition </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13,908</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,534</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Decreases in tax positions due to settlements with taxing authorities </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,593</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Gross unrecognized tax benefits </div></td> <td> </td> <td align="left">$</td> <td align="right">127,927</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">121,644</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Included in the gross uncertain tax benefits balance at June 30, 2010 are $27.6 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. Of the $127.9 million of gross unrecognized tax benefits, $83.8 million, if recognized, would reduce our income tax expense and effective tax rate. Included in the $83.8 million is $1.2 million of gross uncertain tax benefits associated with current year acquisitions that would reduce our income tax expense and effective tax rate only if recognized after the applicable measurement period as described in <i>ASC Topic 805, Business Combinations</i>. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In accordance with the disclosure requirements as described in <i>ASC Topic 740, Income Taxes</i>, the Company has classified uncertain tax positions as non-current income tax liabilities unless expected to be paid in one year. The Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. For the six months ended June 30, 2010 and 2009, the Company recognized approximately $0.1 million and $5.1 million, respectively, in interest and penalties in the Consolidated Statement of Operations. The Company had approximately $11.0 million for the payment of interest and penalties accrued at June 30, 2010 in the Consolidated Balance Sheets compared to $9.8 million accrued at December 31, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     It is reasonably possible that there will be a reduction to the balance of unrecognized tax benefits up to $34.6 million in the next twelve months. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company received favorable settlements on certain tax audits in the US, China and Norway during the three months ended June 30, 2010, which resulted in a reduction of approximately 10 percent to the effective tax rate. These audits were settled for pre-acquisition years 2006 through 2008 for Applied Biosystems federal returns; 2002 and 2003 for Norway; and 1993-2002 for China. The Company is subject to routine compliance reviews on various tax matters around the world in the ordinary course of business. Currently, income tax audits are in China, Italy, Norway, Singapore, United Kingdom, and the United States. The impact on the Consolidated Statement of Operations is not anticipated to be material. </div> </div> </div>  <!-- Begin Block Tagged Note 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. 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