Income Taxes (Text Block)

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

Income Taxes

Our tax provisions as a percentage of income (loss) before tax typically differ from the federal statutory rate of 35%, and may vary from period to period, due to fluctuations in the forecasted mix of earnings in domestic and international jurisdictions, new or revised tax legislation and accounting pronouncements, tax credits, state income taxes, adjustments to valuation allowances, and uncertain tax positions, among other items.

Our tax benefit for the first three months of 2013 reflects the favorable discrete tax benefit for the retroactive extension of the 2012 research and experimentation credit in the amount of $4.0 million. The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013 and extended several business tax provisions including the research and experimentation credit. Our annual estimated effective tax rate for 2013 was favorably impacted by a proportionate increase in projected earnings in foreign jurisdictions with tax rates below 35%, the benefit of certain interest expense deductions, and an election under U.S. Internal Revenue Code Section 338 with respect to a foreign acquisition in 2007.  Accordingly, our 2013 annual estimated effective tax rate is lower than our 2012 annual estimated effective tax rate.

Our tax provision in 2012 is lower than the federal statutory rate of 35% due to projected earnings in tax jurisdictions with rates lower than 35%, the benefit of certain interest expense deductions, and an election under U.S. Internal Revenue Code Section 338 with respect to a foreign acquisition in 2007.

We classify interest expense and penalties related to unrecognized tax liabilities and interest income on tax overpayments as components of income tax expense. The net interest and penalties expense recognized is as follows:

	Three Months Ended March 31,
	2013		2012
	(in thousands)
Net interest and penalties expense	$	171	$	287

Accrued interest and penalties recorded are as follows:

	March 31, 2013		December 31, 2012
	(in thousands)
Accrued interest	$	3,139	$	3,095
Accrued penalties	3,035		3,030

Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate are as follows:

	March 31, 2013		December 31, 2012
	(in thousands)
Unrecognized tax benefits related to uncertain tax positions	$	26,981	$	26,433
The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate	26,353		25,852

We believe it is reasonably possible that our unrecognized tax benefits may decrease by approximately $1.2 million within the next twelve months due to the expiration of the statute of limitations. At March 31, 2013, we are not able to reasonably estimate the timing of future cash flows relating to our uncertain tax positions.