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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Taxes [Abstract] |
Income Taxes | 9 Income Taxes Income tax data for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):
|  |  |  | Year Ended December 31,
|  |  |  | 2013 |  | 2012 |  | 2011
The components of income from operations before income taxes are |  |  |  |  |  |  |  |  |
| as follows: |  |  |  |  |  |  |  |  |
| Domestic |  | $ | 116,067 |  | $ | 116,071 |  | $ | 102,998
| Foreign |  |  | 374,038 |  |  | 371,554 |  |  | 406,254
|  | Total |  | $ | 490,105 |  | $ | 487,625 |  | $ | 509,252
|  |  |  | Year Ended December 31,
|  |  |  | 2013 |  | 2012 |  | 2011
The current and deferred components of the provision for income |  |  |  |  |  |  |  |  |
| taxes on operations are as follows: |  |  |  |  |  |  |  |  |
| Current |  | $ | 39,933 |  | $ | 78,401 |  | $ | 82,108
| Deferred |  |  | 169 |  |  | (52,219) |  |  | (5,824)
|  | Total |  | $ | 40,102 |  | $ | 26,182 |  | $ | 76,284
The jurisdictional components of the provision for income taxes on |  |  |  |  |  |  |  |  |
| operations are as follows: |  |  |  |  |  |  |  |  |
| Federal |  | $ | (702) |  | $ | 39,840 |  | $ | 33,242
| State |  |  | 5,142 |  |  | 5,599 |  |  | 5,661
| Foreign |  |  | 35,662 |  |  | (19,257) |  |  | 37,381
|  | Total |  | $ | 40,102 |  | $ | 26,182 |  | $ | 76,284
The differences between income taxes computed at the United States |  |  |  |  |  |  |  |  |
| statutory rate and the provision for income taxes are summarized |  |  |  |  |  |  |  |  |
| as follows: |  |  |  |  |  |  |  |  |
| Federal tax computed at U.S. statutory income tax rate |  | $ | 171,537 |  | $ | 170,669 |  | $ | 178,238
| Settlement of tax audits |  |  | (30,552) |  |  | (6,035) |  |  | (1,617)
| State income tax, net of federal income tax benefit |  |  | 3,342 |  |  | 3,639 |  |  | 3,679
| Net effect of foreign operations |  |  | (96,461) |  |  | (102,858) |  |  | (100,911)
| Recognition of deferred tax asset associated with a non-U.S. |  |  |  |  |  |  |  |  |
|  | net operating loss |  |  | - |  |  | (36,410) |  |  | -
| Other, net |  |  | (7,764) |  |  | (2,823) |  |  | (3,105)
|  | Provision for income taxes |  | $ | 40,102 |  | $ | 26,182 |  | $ | 76,284
The four principal jurisdictions in which the Company manufactures are the U.S., Ireland, the United Kingdom and Singapore, where the marginal effective tax rates were approximately 37.5%, 12.5%, 23.25% and 0%, respectively, as of December 31, 2013. The Company has a contractual tax rate in Singapore of 0% through March 2016, based upon achievement of contractual milestones that the Company expects to continue to meet. The current statutory tax rate in Singapore is 17%. The Company's effective tax rates for the years ended December 31, 2013, 2012 and 2011 were 8.2%, 5.4% and 15.0%, respectively. T he income tax provision for 2013 included a $31 million net tax benefit related to the complet ion of tax audit examinations. In addition, the research and development tax credit (“R&D Tax Credit”) was retroactively extended in January 2013 for the 2012 and 2013 tax years. The entire $3 million benefit related to the 2012 tax year was recorded in the first quarter of 2013, and the 2013 benefit is included in the annual effective tax rate. The net income tax benefits related to the completed tax audit examinations and the 2012 R&D Tax Credit decreased the Company's effective tax rate by 6.9 percentage points in 2013. The income tax provision for the year ended December 31, 2012 included a $36 million tax benefit related to the Company's refinancing of certain of its inter-company debt arrangements, which enabled the Company to recognize a deferred tax asset associated with a non-U.S. net operating loss carryforward. During the year ended December 31, 2012, the Company also recorded a $6 million tax benefit related to tax audit settlement s in the U.S. These tax benefits decreased the Compa ny's effective tax rate by 8.6 percentage points in the year ended December 31, 2012. Included in the income tax provision for the year ended December 31, 2011 is $2 million of tax benefit related to the reversal of a reserve for interest related to a tax audit settlement in the United Kingdom. This tax benefit decreased the Company's effective tax rate by 0.3 percentage points in the year ended December 31, 2012. The remaining difference s between the effective tax rates for 2013, 2012 and 2011 were primarily attributable to differences in the proportionate amounts of pre-tax income recognized in jurisdictions with different effective tax rates. The tax effects of temporary differences and carryforwards which give rise to deferred tax assets and deferred tax (liabilities) are summarized as follows (in thousands):
|  |  |  |  | December 31,
|  |  |  |  | 2013 |  | 2012
Deferred tax assets: |  |  |  |  |  |
| Net operating losses and credits |  | $ | 116,567 |  | $ | 119,405
| Depreciation |  |  | 7,163 |  |  | 14,555
| Stock-based compensation |  |  | 22,684 |  |  | 25,024
| Deferred compensation |  |  | 25,391 |  |  | 29,666
| Revaluation of equity investments |  |  | 3,832 |  |  | 3,919
| Inventory |  |  | 3,651 |  |  | 3,658
| Accrued liabilities and reserves |  |  | 23,268 |  |  | 36,711
| Other |  |  | 15,289 |  |  | 19,038
|  | Total deferred tax assets |  |  | 217,845 |  |  | 251,976
| Valuation allowance |  |  | (94,952) |  |  | (93,576)
|  | Deferred tax assets, net of valuation allowance |  |  | 122,893 |  |  | 158,400
Deferred tax liabilities: |  |  |  |  |  |
| Capitalized software |  |  | (18,012) |  |  | (15,726)
| Amortization |  |  | (3,798) |  |  | (3,980)
| Indefinite-lived intangibles |  |  | (18,840) |  |  | (18,252)
| Other |  |  | - |  |  | (4)
|  | Total deferred tax liabilities |  |  | (40,650) |  |  | (37,962)
|  |  | Net deferred tax assets |  | $ | 82,243 |  | $ | 120,438
Net deferred tax assets of $32 million and $51 million are included in other current assets at December 31, 2013 and 2012, respectively, and net deferred tax assets of $69 million are included in other assets for both periods. Net deferred tax liabilities of $1 million and $18 million are included in other current liabilities and other long-term liabilities, respectively, at December 31, 2013. During the year ended December 31, 2012, the deferred tax assets associated with net operating losses and tax credit carryforwards and the related valuation allowance increased due to the aforementioned tax benefit related to the Company's refinancing of inter-company debt arrangements. This deferred tax asset was established for $111 million, for which a $75 million valuation allowance was established and a $36 million tax benefit was recorded in the income tax provision. The Company's net deferred tax assets associated with net operating losses and tax credit carryforwards are approximately $3 2 million as of December 31, 2013, which represent the future tax benefit of foreign net operating loss carryforwards that do not expire under current law. The income tax benefits associated with non-qualified stock option compensation expense recognized for tax purposes and credited to additional paid-in capital were $16 million, $11 million and $32 million for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013, there were unremitted earn ings of foreign subsidiaries of approximately $3 billion. The Company has not provided for U.S. income taxes or foreign withholding taxes on these earnings as it is the Company's current intention to permanently reinvest these earnings outside the U.S. Because of the complexity of U.S. and foreign tax rules applicable to the distribution of earnings from foreign subsidiaries to U.S. legal entities, the determination of the unrecognized deferred tax liability on these earnings is not practicable. Events that could trigger a tax might include U.S. acquisitions or other investments funded by cash distributions or loans from a foreign subsidiary. The Company accounts for its uncertain tax return reporting positions in accordanc e with the accounting standards for income taxes, which require financial statement reporting of the expected future tax consequences of uncertain tax reporting positions on the presumption that all concerned tax authorities possess full knowledge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but prohibit any discounting of those unrecognized tax benefits associated with those reporting positions for the time value of money. The following is a summary of the activity of the Company's unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 (in thousands):
|  |  |  | 2013 |  | 2012 |  | 2011
Balance at the beginning of the period |  | $ | 64,390 |  | $ | 73,199 |  | $ | 71,523
| Realization of uncertain U.S. tax benefits |  |  | - |  |  | (5,625) |  |  | -
| Changes resulting from completion of tax examinations |  |  | (35,279) |  |  | - |  |  | -
| Other changes in uncertain tax benefits |  |  | (4,395) |  |  | (3,184) |  |  | 1,676
Balance at the end of the period |  | $ | 24,716 |  | $ | 64,390 |  | $ | 73,199
The Company's uncertain tax positions are taken with respect to income tax return reporting periods beginning after December 31, 2007, which are the periods that generally remain open to income tax audit examination by income tax authorities. The Company continuously monitors the lapsing of statutes of limitations on potential tax assessments for related changes in the measurement of unrecognized tax benefits, related net interest and penalties, and deferred tax assets and liabilities. During the year ended December 31, 2013, the Company concluded tax audit disputes with tax authorities in the U.S. and Japan that were related to matters for which the Company had previously recorded uncertain tax benefits of approximately $35 million. The resolution of these tax audit disputes also entailed net global assessments against the Company of approximately $4 million. Accordingly, the Company recorded a $35 million reduction in the measurement of its unrecognized tax benefits and a $4 million increase in its current tax liabilities in the year ended December 31, 2013, which reduced the provision for income taxes and increased net income for the year ended December 31, 2013 by $31 million. As of December 31, 2013, the Company expects to record additional reductions in the measurement of its unrecognized tax benefits and related net interest and penalties of approximately $6 million within the next twelve months due to the lapsing of statutes of limitations o n potential tax assessments. The Company does not expect to record any other material reductions in the measurement of its unrecognized tax benefits within the next twelve months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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