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Income Taxes
6 Months Ended
Jun. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company recorded an income tax expense of $1.9 million for the three months ended June 30, 2014 and an income tax benefit of $13.2 million for the six months ended June 30, 2014. The Company recorded an income tax benefit of $0.1 million and $0.8 million for the three and six months ended June 30, 2013, respectively. The effective income tax rate for the six months ended June 30, 2014 was 37% and reflects an expected statutory tax benefit associated with the trademark litigation accrual and discrete benefits relating to disqualifying dispositions of qualified stock grants, reduced by U.S. permanent tax items primarily relating to stock-based compensation and non-deductible expenses. The effective income tax rate for the six months ended June 30, 2013 was 12% and reflected a discrete tax benefit of $0.9 million, or 13% of pre-tax loss, related to the 2012 federal research and development credit which was retrospectively reinstated in the six months ended June 30, 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 six months ended June 30, 2014.
The Company's globalization initiative, which involves establishing new international operations and entering into new intercompany transfer pricing arrangements, including the licensing of intangibles, was implemented in January 2014. The Company's financial results for the three and six months ended June 30, 2014 reflects the current impact of this initiative.