|9 Months Ended|
Sep. 30, 2011
|Income Taxes [Abstract]|
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.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef