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Income Taxes
9 Months Ended
Sep. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective tax rate of 21.9% and 25.9% for the three and nine months ended September 30, 2013, respectively, differs from the U.S. federal statutory rate of 35% primarily due to the effect of income earned by certain of the Company's foreign entities being taxed at lower rates than the U.S. federal statutory rate, the positive effect of the domestic production activities deduction and increased research and development credits. Additionally, strong operating performance in China facilitated the recognition of certain net operating losses and other deferred tax assets. The effective tax rate of 30.7% and 31.1% for the three and nine months ended September 30, 2012, respectively, differed from the U.S. federal statutory rate primarily due to the effect of income earned by certain of the Company's foreign entities being taxed at lower rates than the U.S. federal statutory rate and the positive effect of the domestic production activities deduction.
As of September 30, 2013, the Company has recorded a $641 liability for gross unrecognized tax benefits. This amount includes $296 of unrecognized tax benefits which, if ultimately recognized, will reduce the Company's annual effective tax rate. During the third quarter of 2013, gross unrecognized tax benefits decreased $777 due to the lapse of the statute of limitations, $274 of which reduced the effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2013, the Company had accrued approximately $70 for the payment of interest and penalties.