Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes [Abstract]  
Income Taxes
9. Income Taxes
As of June 30, 2011, the total amount of unrecognized tax benefits, related interest and penalties was $32.1 million, $5.5 million and $1.4 million, respectively. During the six months ended June 30, 2011, the Company recorded tax, interest and penalties related to uncertain tax positions of $3.9 million, $1.0 million and $0.2 million respectively which were reduced by the expiration of the statutes of limitations for tax of $3.4 million, interest of $1.1 million, and penalties of $0.1 million which resulted in a year to date net increase for tax and penalties of $0.5 million and $0.1 million, respectively, and a net decrease for interest of $0.1 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, $32.1 million of unrecognized tax benefits, $5.5 million of interest and $1.4 million of penalties, would impact the effective tax rate.
During the six months ended June 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.