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Income Taxes
3 Months Ended
Mar. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company recorded an income tax benefit of $15.1 million for the three months ended March 31, 2014 and an income tax benefit of $0.8 million for the three months ended March 31, 2013. The effective income tax benefit rate for the three months ended March 31, 2014 was 45% and reflects an expected statutory tax benefit associated with the trademark litigation accrual, reduced by U.S. permanent tax items primarily relating to stock-based compensation and non-deductible expenses. The effective income tax benefit rate for the three months ended March 31, 2013 was 455% and reflected a discrete tax benefit of $0.9 million, or 536% of pre-tax loss, related to the 2012 federal research and development credit which was retrospectively reinstated in the three months ended March 31, 2013. The Company updates its annual effective income tax rate each quarter and if the estimated effective income tax rate changes, a cumulative adjustment is made.
There were no material changes to the Company's unrecognized tax benefits and interest accrued related to unrecognized tax benefits during the three months ended March 31, 2014.
The Globalization Initiative, which involved establishing new international operations and entering into new intercompany transfer pricing arrangements, including the licensing of intangibles, was implemented in January 2014. The results for the three months ended March 31, 2014 reflect the impacts of implementing this initiative.