Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of domestic and foreign income (loss) and income tax expense (benefit)

			For the Years Ended December 31,
			2012		2011		2010
Income before income tax expense:
	Domestic		$	668	$	623	$	228
	Foreign			790		708		264
			$	1,458	$	1,331	$	492
Income tax expense (benefit):
	Current:
		Federal	$	256	$	144	$	314
		State		14		(2)		31
		Foreign		49		28		29
		Total current		319		170		374
	Deferred:
		Federal		12		61		(264)
		State		(11)		(4)		8
		Foreign		(11)		19		(45)
		Total deferred		(10)		76		(301)
Add back tax benefit credited to additional paid-in capital:
	Excess tax benefit associated with stock options			---		---		1
Income tax expense			$	309	$	246	$	74

Reconciliation of income taxes at the U.S. federal statutory rate to income tax expense (benefit)

		For the Years Ended December 31,
		2012				2011				2010
Federal income tax provision at statutory rate		$	510	35	%	$	466	35	%	$	172	35	%
State taxes, net of federal benefit			31	2			18	1			30	6
Research and development credits			(10)	(1)			(21)	(2)			(11)	(2)
Domestic production activity deduction			(17)	(1)			(15)	(1)			(13)	(3)
Foreign rate differential			(241)	(17)			(202)	(15)			(109)	(22)
Change in tax reserves			53	4			10	1			(1)	---
Shortfall from employee stock option exercises			8	---			9	1			8	1
Return to provision adjustment			(4)	---			(31)	(2)			---	---
Net Operating Loss tax attribute received
	from Internal Revenue Service audit		(46)	(3)			---	---			---	---
Other			25	2			12	1			(2)	---
Income tax expense		$	309	21	%	$	246	19	%	$	74	15	%

Schedule of the components of the net deferred tax assets (liabilities)

		As of December 31,
		2012		2011
Deferred tax assets:
	Reserves and allowances	$	11	$	20
	Allowance for sales returns and price protection		56		59
	Inventory reserve		5		2
	Accrued expenses		65		101
	Deferred revenue		357		330
	Tax credit carryforwards		62		43
	Net operating loss carryforwards		14		15
	Stock-based compensation		119		91
	Foreign deferred assets		7		16
	Other		2		5
Deferred tax assets			698		682
Valuation allowance			---		---
Deferred tax assets, net of valuation allowance			698		682
Deferred tax liabilities:
	Intangibles		(161)		(177)
	Prepaid royalties		---		(2)
	Capitalized software development expenses		(54)		(33)
	State taxes		(21)		(18)
Deferred tax liabilities			(236)		(230)
Net deferred tax assets		$	462	$	452

Reconciliation of unrecognized tax benefits for the period

	For the Years Ended December 31,
	2012		2011		2010
Unrecognized tax benefits balance at January 1	$	154	$	132	$	139
Gross increase for tax positions of prior years		3		4		---
Gross increase for tax positions of current year		59		65		21
Settlement with taxing authorities		(8)		---		(16)
Lapse of statute of limitations		(1)		(47)		(12)
Unrecognized tax benefits balance at December 31	$	207	$	154	$	132