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Income Taxes
9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective income tax rate of 34.4% and 31.9% for the three and nine months ended September 30, 2014, respectively, differed 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 effective income tax rate of 21.9% and 25.9% for the three and nine months ended September 30, 2013, respectively, differed 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 federal statutory rate, the positive effect of the domestic production activities deduction and increased research and development credits. Strong operating performance in China during 2013 facilitated the recognition of certain net operating losses and other deferred tax assets.
As of September 30, 2014, the Company has recorded a $1,149 liability for gross unrecognized tax benefits. This amount includes $593 of unrecognized tax benefits which, if ultimately recognized, will reduce the Company’s annual effective income tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2014, the Company had accrued approximately $121 for the payment of interest and penalties.