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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company’s effective income tax rate was 31.5% and 29.6% for the nine months ended September 30, 2014 and 2013, respectively. The effective income tax rate is based upon estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable quarterly periods, including retroactive changes in tax legislation, settlements of tax audits or assessments, the resolution or identification of tax position uncertainties and acquisitions of other companies.

During the third quarter of 2014, the Company recognized a state tax benefit related to its software development activities, which resulted in a net tax benefit of $13.3 million for the period from January 1, 2010 to September 30, 2014.  During the third quarter of 2013, the Company completed an analysis of its domestic production activities deduction, which resulted in a federal tax benefit of $16.5 million for the period from January 1, 2010 to September 30, 2013.  The Company also recorded a discrete item during the nine months ended September 30, 2013 related to the reinstatement of the federal research and development credit at the beginning of 2013, which included a one-time retroactive impact for fiscal year 2012.

For the nine months ended September 30, 2014, the effective income tax rate was lower than the federal statutory tax rate due to the benefit from the state software development activities and income from foreign jurisdictions that is taxed at lower rates compared to the statutory tax rates in the United States; partially offset by the effects of accounting for stock-based compensation in accordance with the authoritative guidance for share-based payments and state income taxes.  For the nine months ended September 30, 2013, the effective income tax rate was lower than the federal statutory tax rate mainly due to the domestic production activities deduction, the composition of income in foreign jurisdictions with lower rates, as well as the reinstatement of the federal research and development credit at the beginning of 2013, which included a one-time retroactive impact for fiscal year 2012.