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Income Taxes
6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The provision for income taxes for the three months ended June 30, 2013 was $1.9 million and the benefit from income taxes for the six months ended June 30, 2013 was $18.5 million. The provision for income taxes for the three months and the benefit from income taxes for the six months ended June 30, 2013 primarily relate to a projected tax benefit for domestic and certain foreign losses as offset by foreign withholding and income taxes. The provision for income taxes for the three and six months ended June 30, 2012 was $4.0 million and $2.8 million, respectively, and was largely comprised of a projected tax expense for domestic and selected foreign jurisdictions as well as foreign withholding and income taxes. The Company's provision for income taxes is based on its worldwide estimated annualized effective tax rate, except for jurisdictions for which a loss is expected for the year and no benefit can be realized for those losses, and the tax effect of discrete items occurring during the period. The tax for jurisdictions for which a loss is expected and no benefit can be realized for the year is based on actual taxes and tax reserves for the quarter. As of June 30, 2013, unrecognized tax benefits approximated $5.1 million, of which $3.5 million would affect the effective tax rate if recognized. At December 31, 2012, unrecognized tax benefits were $4.8 million of which $3.6 million would affect the effective tax rate if recognized. It is reasonably possible that unrecognized tax benefits may decrease by a range of $2.3 million to $2.4 million in the next 12 months due to the expected lapse of statutes of limitation relating to the federal research tax credit, and foreign tax incentives.
It is the Company's policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. For the three and six months ended June 30, 2013 and 2012, the Company recognized an insignificant amount of interest and penalties related to unrecognized tax benefits. At both June 30, 2013 and December 31, 2012, the Company had accrued $0.5 million of interest and penalties related to unrecognized tax benefits.
At June 30, 2013, the Company's 2008 through 2012 tax years were open and subject to potential examination in one or more jurisdictions. In addition, in the U.S., any net operating losses or credits that were generated in prior years but utilized in an open year may also be subject to examination. The Company is currently under Internal Revenue Service examination related to its 2008 and 2009 tax returns. The Company is not currently under any domestic state income tax examination.