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Income Taxes (Text Block)
3 Months Ended
Mar. 31, 2014
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 forecast 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 2014 was higher than the federal statutory benefit of 35% due to discrete tax benefits recognized.

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 higher percentage of 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. 

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 were as follows:
 
 
Three Months Ended March 31,
 
2014
 
2013
 
(in thousands)
Net interest and penalties expense (benefit)
$
(543
)
 
$
171


Accrued interest and penalties recorded were as follows:

 
March 31, 2014
 
December 31, 2013
 
(in thousands)
Accrued interest
$
1,846

 
$
2,078

Accrued penalties
2,808

 
3,075


Unrecognized tax benefits related to uncertain tax positions and the amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate were as follows:
 
 
March 31, 2014
 
December 31, 2013
 
(in thousands)
Unrecognized tax benefits related to uncertain tax positions
$
29,068

 
$
28,615

The amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate
27,833

 
27,694



We believe it is reasonably possible that our unrecognized tax benefits may decrease by approximately $2.0 million within the next twelve months due to the expiration of the statute of limitations. At March 31, 2014, we are not able to reasonably estimate the timing of future cash flows related to our uncertain tax positions.