Income Taxes |
9 Months Ended |
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Sep. 30, 2011 | |
| Income Taxes [Abstract] | |
| Income Taxes |
9. Income Taxes
As of September 30, 2011, the total amount of unrecognized tax benefits, related interest and
penalties was $32.4 million, $5.6 million and $1.3 million, respectively. During the nine months
ended September 30, 2011, the Company recorded tax, interest and penalties related to uncertain tax
positions of $5.1 million, $1.2 million and
$0.2 million, respectively, and reduced uncertain tax
positions due to the expiration of statutes of limitations for tax, interest and penalties of $3.6
million, $1.1 million and $0.1 million, respectively. During the nine months ended September 30,
2011, uncertain tax positions were also reduced by foreign currency translation adjustments of $0.9
million, resulting in a year to date net increase in unrecognized tax benefits and related interest
and penalties of $0.8 million. The unrecognized tax benefits relate primarily to uncertainties from
international transfer pricing issues and the deductibility of certain operating expenses in
various jurisdictions. If the total amount of unrecognized tax benefits were recognized, $32.4
million of unrecognized tax benefits, $5.6 million of interest and $1.3 million of penalties would
impact the effective tax rate.
During the nine months ended September 30, 2011, the Company benefited from the terms of a tax
holiday in the People’s Republic of China. The tax holiday commenced on January 1, 2008 and will
conclude on December 31, 2012. Under the terms of the holiday, the Company was subject to a zero
tax rate in China during 2008 and 2009, 11% tax rate in 2010, and is subject to a graduated rate of
12% in 2011. The tax rate will gradually increase to a maximum rate of 25% in 2013.
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