INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) before income taxes were as follows:



	Years Ended
	December 31, 2013			December 31, 2012			December 31, 2011
	(in thousands)
U.S.	$	25,648		$	(19,956	)	$	125,905
Foreign	(26,161		)	62,194			255,285
Income (loss) before income taxes	$	(513	)	$	42,238		$	381,190

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, 2013			December 31, 2012			December 31, 2011
		(in thousands)
Federal	Current	$	4,805		$	10,378		$	2,454
	Deferred	(10,220		)	4,501			5,982
State	Current	35			(5		)	172
	Deferred	(124		)	(494		)	(2,064		)
Foreign	Current	25,362			3,757			18,979
	Deferred	1,684			(6,344		)	40,677
Provision for income taxes		$	21,542		$	11,793		$	66,200

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, 2013		December 31, 2012		December 31, 2011
U.S. Federal statutory income tax rate	35.00	%	35.00	%	35.00	%
State tax	3.56		(0.23	)	0.22
Effect of foreign operations	(3,979.63	)	(2.55	)	(15.52	)
Recognition of tax credits	875.54		(10.04	)	(2.95	)
Change of valuation allowance	(295.93	)	1.04		(0.09	)
Audit settlements and IRS refunds	(828.85	)	—		0.20
Other, net (1)	(4.15	)	4.70		0.51
Effective tax provision rate	(4,194.46	)%	27.92	%	17.37	%

Schedule of Deferred Tax Assets and Liabilities



	December 31, 2013			December 31, 2012
	(in thousands)
Deferred income tax assets:
Net operating losses	$	46,723		$	53,500
Research and development, foreign tax and other tax credits	75,770			55,051
Accrued liabilities	30,599			31,519
Fixed assets	46,109			42,711
Intangible assets	10,555			8,331
Deferred income	5,261			5,007
Share-based compensation	5,889			9,084
Unrealized foreign exchange translation	1,109			4,801
Other	970			4,878
Total deferred income tax assets	222,985			214,882
Deferred income tax liabilities:
Fixed assets	—			(55		)
Deferred income	—			(846		)
Unremitted earnings of foreign subsidiaries	—			(2,548		)
Foreign losses subject to recapture	(12,054		)	(14,837		)
Other	—			(267		)
Total deferred tax liabilities	(12,054		)	(18,553		)
Less valuation allowance	(41,321		)	(41,271		)
Net deferred income tax assets	$	169,610		$	155,058
Reported as:
Current deferred tax assets(1)	$	35,493		$	53,105
Current deferred tax liabilities(2)	(208		)	(304		)
Non-current deferred tax assets(3)	134,365			102,315
Non-current deferred tax liabilities(4)	(40		)	(58		)
Net deferred income tax assets	$	169,610		$	155,058

_________________________________________


(1)	Included within prepaids and other current assets on the consolidated balance sheets.


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


(3)	Included within other assets on the consolidated balance sheets.


(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, 2013 consist of the following:



Tax Attributes	December 31, 2013		Nature of Expiration
	(in thousands)
Foreign net operating loss carry forwards	$	219,503	beginning of 2014
Federal net operating loss carry forwards	$	19,336	beginning of 2025
State net operating loss carry forwards	$	511,749	2014-2033
Federal R&D credits, net of those related to stock option deductions	$	9,925	beginning of 2019
Federal R&D credits related to stock option deductions	$	32,171	beginning of 2019
State R&D credits	$	18,605	indefinite
Foreign tax credits	$	45,583	beginning of 2017
State investment tax credits	$	1,925	beginning of 2014
Foreign R&D credits	$	44,344	refundable

Summary of Income Tax Contingencies



	Years Ended
	December 31, 2013			December 31, 2012			December 31, 2011
	(in thousands)
Balance at January 1	$	72,692		$	67,967		$	63,593
Tax Positions Related to Current Year:
Additions	13,201			10,270			8,794
Tax Positions Related to Prior Years:
Additions	58,253			793			—
Reductions	(13,836		)	(1,877		)	(568		)
Lapse of statute of limitation	(7,152		)	(4,314		)	(1,672		)
Settlements	(3,652		)	(147		)	(2,180		)
Balance at December 31	$	119,506		$	72,692		$	67,967

- 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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