Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of domestic and foreign income (loss) and income tax expense (benefit)

			For the Years Ended December 31,
			2014		2013		2012
Income before income tax expense:
	Domestic		$	325	$	626	$	668
	Foreign			656		693		790
			$	981	$	1,319	$	1,458
Income tax expense (benefit):
	Current:
		Federal	$	118	$	100	$	256
		State		11		6		14
		Foreign		37		31		49
		Total current		166		137		319
	Deferred:
		Federal		26		134		12
		State		(18)		(12)		(11)
		Foreign		(58)		39		(11)
		Total deferred		(50)		161		(10)
Add back tax benefit credited to additional paid-in capital:
	Excess tax benefit associated with stock options			30		11		---
Income tax expense			$	146	$	309	$	309

Reconciliation of income taxes at the U.S. federal statutory rate to income tax expense (benefit)

		For the Years Ended December 31,
		2014				2013				2012
Federal income tax provision at statutory rate		$	343	35	%	$	462	35	%	$	510	35	%
State taxes, net of federal benefit			5	---			6	---			31	2
Research and development credits			(24)	(2)			(49)	(4)			(10)	(1)
Domestic production activity deduction			---	---			(9)	(1)			(17)	(1)
Foreign rate differential			(245)	(25)			(174)	(13)			(241)	(17)
Change in tax reserves			128	13			89	7			53	4
Shortfall from employee stock option exercises			---	---			---	---			8	---
Return to provision adjustment			(7)	(1)			(3)	---			(4)	---
Net Operating Loss tax attribute received
	from Internal Revenue Service audit		---	---			---	---			(46)	(3)
Net Operating Loss tax attribute assumed
	from Purchase Transaction		(52)	(5)			(16)	(1)			---	---
Other			(2)	---			3	---			25	2
Income tax expense		$	146	15	%	$	309	23	%	$	309	21	%

Schedule of the components of the net deferred tax assets (liabilities)

		As of December 31,
		2014		2013
Deferred tax assets:
	Allowance for sales returns and price protection		74		63
	Inventory reserve		9		8
	Accrued expenses		38		48
	Deferred revenue		291		273
	Tax credit carryforwards		50		35
	Net operating loss carryforwards		10		11
	Stock-based compensation		69		91
	Transaction costs		9		11
	Other		13		25
Deferred tax assets			563		565
Valuation allowance			---		---
Deferred tax assets, net of valuation allowance			563		565
Deferred tax liabilities:
	Intangibles		(169)		(152)
	Prepaid royalties		(22)		(71)
	Capitalized software development expenses		(84)		(60)
	State taxes		(34)		(27)
Deferred tax liabilities			(309)		(310)
Net deferred tax assets		$	254	$	255

Reconciliation of unrecognized tax benefits for the period

	For the Years Ended December 31,
	2014		2013		2012
Unrecognized tax benefits balance at January 1	$	294	$	207	$	154
Gross increase for tax positions of prior years		2		1		3
Gross increase for tax positions of current year		125		91		59
Settlement with taxing authorities		(2)		---		(8)
Lapse of statute of limitations		---		(5)		(1)
Unrecognized tax benefits balance at December 31	$	419	$	294	$	207