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9. Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes [Abstract]  
Income Taxes


9.INCOME TAXES


Our effective tax rate was 31% and 30% for the three and six month periods ended June 30, 2011 and 2010, respectively.  The effective tax rates for all periods presented were lower than the U.S. statutory rate due to tax benefits for nontaxable dividend income, research and development tax credits, and differences between U.S. and foreign statutory tax rates. The effective tax rate for the three months ended June 30, 2011 was higher than the rate for the same periods in 2010 primarily due to changes in estimates pertaining to differences between U.S. and foreign statutory tax rates. The effective tax rate for the six months ended June 30, 2011 was higher than the rate for the same period in 2010 primarily due to changes in estimates pertaining to foreign tax credits related to distributions from non U.S. subsidiaries as well as differences between U.S. and foreign statutory tax rates.


As of June 30, 2011, based on the expected outcome of certain examinations or as a result of the expiration of statute of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by approximately $5 million to $9 million. Substantially all such amounts will impact our effective income tax rate.


We record liabilities related to uncertain tax positions. We do not believe any currently pending uncertain tax positions will have a material adverse effect on our Condensed Consolidated Financial Statements, although an adverse resolution of one or more of these uncertain tax positions in any period may have a material impact on the results of operations for that period