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Income Taxes
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6 Months Ended |
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Jun. 30, 2011
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| 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.
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