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Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes

5. Income Taxes

The effective tax rate for both the quarter and six months ended June 30, 2011 reflected the discrete tax effect of a charge for legal settlements, primarily related to the Hernia Product Claims (see Note 8 of the notes to the condensed financial statements), that were incurred in a low tax jurisdiction. At June 30, 2011, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was $47.7 million (of which $45.5 million would impact the effective tax rate, if recognized) plus $7.2 million of accrued interest. At December 31, 2010, the liability for unrecognized tax benefits was $53.6 million plus $11.4 million of accrued interest. Depending upon open tax examinations and/or the expiration of applicable statutes of limitation, the company believes it is reasonably possible that the total amount of unrecognized tax benefits may decrease by up to $14.5 million within the next 12 months.