INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income taxes were as follows:



	Years Ended
	December 31, 2012			December 31, 2011		December 31, 2010
	(In thousands)
U.S.	$	(19,956	)	$	125,905	$	102,590
Foreign	62,194			255,285		13,762
Income before income taxes	$	42,238		$	381,190	$	116,352

Schedule of (provision for) benefit from income taxes and the effective tax rates

The provision for (benefit from) income taxes consists of the following:



		Years Ended
		December 31, 2012			December 31, 2011			December 31, 2010
		(In thousands)
Federal	Current	$	10,378		$	2,454		$	(142,191	)
	Deferred	4,501			5,982			(88,291		)
State	Current	(5		)	172			58
	Deferred	(494		)	(2,064		)	(20,041		)
Foreign	Current	3,757			18,979			8,495
	Deferred	(6,344		)	40,677			(64,753		)
Provision for (benefit from) income taxes		$	11,793		$	66,200		$	(306,723	)

Schedule of Effective Income Tax Rate Reconciliation

The Company's effective tax rate differs from the U.S. Federal statutory income tax rate as follows:



	Years Ended
	December 31, 2012		December 31, 2011		December 31, 2010
U.S. Federal statutory income tax rate	35.00	%	35.00	%	35.00	%
State tax	(0.23	)	0.22		0.65
Effect of foreign operations	(2.55	)	(15.52	)	(40.37	)
Recognition of tax credits	(10.04	)	(2.95	)	(56.22	)
Net operating loss and future deductions not currently benefited	—		—		27.82
Change of valuation allowance	1.04		(0.09	)	(100.33	)
Audit settlements and IRS refunds	—		0.20		(129.42	)
Other, net (1)	4.70		0.51		(0.75	)
Effective tax provision rate	27.92	%	17.37	%	(263.62	)%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that constitute significant portions of the deferred tax assets and deferred tax liabilities are presented below:



	December 31, 2012			December 31, 2011
	(In thousands)
Deferred income tax assets:
Net operating losses	$	53,500		$	33,324
Research and development, foreign tax and other tax credits	55,051			45,327
Accrued liabilities	31,519			33,124
Fixed assets	42,711			42,501
Intangible assets	8,331			12,356
Deferred income	5,007			8,391
Stock-based compensation	9,084			6,830
Unrealized foreign exchange translation	4,801			4,651
Other	4,878			4,832
Total deferred income tax assets	214,882			191,336
Deferred income tax liabilities:
Fixed assets	(55		)	(57		)
Deferred income	(846		)	(693		)
Unremitted earnings of foreign subsidiaries	(2,548		)	(5,075		)
Foreign losses subject to recapture	(14,837		)	(15,170		)
Other	(267		)	—
Total deferred tax liabilities	(18,553		)	(20,995		)
Less valuation allowance	(41,271		)	(38,742		)
Net deferred income tax assets	$	155,058		$	131,599
Reported as:
Current deferred tax assets(1)	$	53,105		$	10,239
Current deferred tax liabilities(2)	(304		)	—
Non-current deferred tax assets(3)	102,315			121,417
Non-current deferred tax liabilities(4)	(58		)	(57		)
Net deferred income tax assets	$	155,058		$	131,599

_________________________________________


(1)	Included within Prepaids and other current assets on the consolidated balance sheets and short-term tax attributes.


(2)	Included within Accrued and other liabilities on the consolidated balance sheets.


(3)	Included within Other assets on the consolidated balance sheets and long-term tax attributes.


(4)	Included within Other long-term liabilities on the consolidated balance sheets.

Summary of Operating Loss Carryforwards and Tax Credit Carryforwards

The Company's tax attribute carry forwards as of December 31, 2012 consist of the following:



Tax Attribute	December 31, 2012		Nature of Expiration
	(In thousands)
Foreign net operating loss carry forwards	$	164,491	beginning of 2013
State net operating loss carry forwards	502,349		2013-2032
Federal R&D credits, net of those related to stock option deductions	5,126		beginning of 2020
Federal R&D credits related to stock option deductions	29,314		beginning of 2020
State R&D credits	14,817		indefinite
Foreign tax credits	43,973		beginning of 2020
State investment tax credits	8,255		beginning of 2013
Foreign R&D credits	32,203		refundable

Summary of Income Tax Contingencies

The reconciliation of the beginning and ending amount of gross UTB is as follows:



	Years Ended
	December 31, 2012			December 31, 2011			December 31, 2010
	(In thousands)
Balance at January 1	$	67,967		$	63,593		$	182,552
Tax Positions Related to Current Year:
Additions	10,270			8,794			35,810
Tax Positions Related to Prior Years:
Additions	793			—			—
Reductions	(1,877		)	(568		)	(34		)
Lapse of Statute of Limitation	(4,314		)	(1,672		)	(2,239		)
Settlements	(147		)	(2,180		)	(152,496		)
Balance at December 31	$	72,692		$	67,967		$	63,593

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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