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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes. Under ASC 740, each interim period is considered an integral part of the annual period and tax expense is measured using an estimated annual effective tax rate. The Company is required, at the end of each interim reporting period, to make its best estimate of the annual effective tax rate for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis. However, if the Company is unable to make a reliable estimate of its annual effective tax rate, the actual effective tax rate for the year-to-date may be the best estimate of the annual effective tax rate. The precision required in estimating the annual effective tax rate is so high that it is not practical for the Company to make a reliable estimate for this purpose. Therefore, the Company has appropriately provided for income tax based on the actual effective tax rate for the year to date results.
The Company’s income tax benefit was $0.8 million and $1.2 million for the three and nine months ended September 30, 2014, respectively compared to an income tax benefit of $17.1 million and $18.2 million for the three and nine months ended September 30, 2013, respectively. The Company’s tax benefit in each period differs from the amount resulting from applying statutory rates primarily due to foreign operations in lower tax jurisdictions, tax reserve adjustments, valuation allowance adjustments and benefits recorded for tax credits.
The Company’s total unrecognized tax benefits were approximately $33.8 million as of September 30, 2014. The amount of unrecognized tax benefits could be reduced upon closure of tax examinations or if the statute of limitations on certain tax filings expires without assessment from the relevant tax authorities. During the three months ended September 30, 2014, the Company increased its uncertain tax positions for items related to prior years by approximately $7.4 million. In addition, during the three months ended September 30, 2014, the Company increased its uncertain tax positions for items related to the current year by approximately $11.2 million. During the three months ended September 30, 2014, the Company decreased its uncertain tax positions for items related to prior years by approximately$3.3 million due to the lapse in the statute of limitations. The Company believes that it is reasonably possible that there could be a reduction in unrecognized tax benefits during the next 12 months of approximately $1.5 million.