Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Provision for/(Benefit from) Income Taxes

The (benefit from)/ provisions for income taxes consisted of the following:

	Year Ended December 31,
	2012			2011			2010
	(In thousands)
Current:
Federal	$	10,400		$	(2,850	)	$	176
State		1,717			336			1,521
Foreign		20,141			13,601			(1,243	)
Total current taxes		32,258			11,087			454
Deferred:
Federal		(50,645	)		(7,240	)		3,494
State		(157	)		211			344
Foreign		(2,416	)		(280	)		(1,122	)
Total deferred taxes		(53,218	)		(7,309	)		2,716
Total	$	(20,960	)	$	3,778		$	3,170

Components of Income/(Loss) from Continuing Operations Before Income Taxes

The following table summarizes the domestic and foreign components of income before income taxes:

	Year Ended December 31,
	2012		2011			2010
	(In thousands)
Domestic	$	65,341	$	(31,636	)	$	(115,078	)
Foreign		109,927		125,426			152,652
Income before income taxes	$	175,268	$	93,790		$	37,574

Components of Company's Deferred Tax Assets and Liabilities

The following table summarizes significant components of the Company’s deferred tax assets and liabilities:

	December 31,
	2012			2011
	(In thousands)
Deferred tax assets:
Tax credit carryovers	$	413,225		$	408,444
Net operating loss carryforwards		968,648			989,989
Capital loss carryover		5,148			552
Future deductions for purchased intangible assets		184,366			152,507
Depreciation and amortization		97,867			120,764
Pension and post-retirement benefits		206,218			220,747
Future deductions for reserves and other		91,964			155,618
Total deferred tax assets		1,967,436			2,048,621
Valuation allowance		(1,781,702	)		(1,902,187	)
Net deferred tax assets		185,734			146,434
Deferred tax liabilities:
Tax deductible goodwill		(18,517	)		(17,120	)
Purchased intangible assets		(157,331	)		(130,219	)
Total deferred tax liabilities		(175,848	)		(147,339	)
Total net deferred tax asset/(liabilities)	$	9,886		$	(905	)

Reconciliation of Provision for/(Benefit from) Income Taxes

A reconciliation of the (benefit from)/provisions for income taxes with the amount computed by applying the statutory federal income tax rate to income before income taxes for the years ended December 31, 2012, 2011 and 2010 is as follows:

	Year Ended December 31,
	2012			2011			2010
	(In thousands)
Expected tax expense at federal statutory rate of 35%	$	61,344		$	32,826		$	13,151
State taxes, net of federal benefit		2,373			2,363			1,237
Foreign rate differential		(11,953	)		(25,607	)		(26,521	)
U.S. taxes on foreign earnings		5,043			32,793			36,128
Withholding taxes		7,842			8,770			5,933
Tax benefit related to valuation allowance release for SandForce acquisition		(42,365	)		—			—
Change in valuation allowance		(9,432	)		(23,439	)		2,921
Nondeductible expenses		5,241			8,049			5,731
Tax refunds/credits		(1,964	)		(2,926	)		(3,140	)
Tax benefit related to refundable R&D/alternative minimum tax credit		—			(530	)		—
Tax deduction for loss on liquidation of subsidiary		(18,200	)		—			—
Lapsed statute of limitations and tax audit settlements		(18,889	)		(16,796	)		(31,668	)
Intraperiod allocation of tax benefit to continuing operations		—			(11,725	)		(644	)
Other		—			—			42
Total tax (benefit)/provision	$	(20,960	)	$	3,778		$	3,170

Reconciliation of Unrecognized Tax Benefits

The following table sets forth a reconciliation of the beginning and ending amounts of the gross unrecognized tax benefits, excluding related interest and penalties:

	Year Ended December 31,
	2012			2011			2010
	(In thousands)
Balance at January 1	$	170,994		$	151,898		$	163,859
Tax positions related to current year:
Additions		29,887			19,482			10,874
Tax positions related to prior years:
Additions		2,000			29,312			1,541
Reductions		—			(20,156	)		(800	)
Lapses in statute of limitations		(9,387	)		(9,580	)		(14,174	)
Payments		—			—			(9,780	)
Foreign exchange loss		400			38			378
Balance at December 31	$	193,894		$	170,994		$	151,898