XML 27 R14.htm IDEA: XBRL DOCUMENT v2.3.0.15
9. Income Taxes
9 Months Ended
Sep. 30, 2011
Income Taxes [Abstract] 
Income Taxes
9.INCOME TAXES

Our effective tax rate was 18% and 22% for the three months ended September 30, 2011 and 2010, respectively. Our effective tax rate was 27% for both the nine months ended September 30, 2011 and 2010. The effective tax rates for all periods presented were lower than the U.S. statutory rate primarily due to tax benefits from differences between U.S. and foreign statutory tax rates, research and development tax credits, and nontaxable dividend income.

The effective tax rate for the three months ended September 30, 2011 was lower than the rate for the same period in 2010 primarily due to a change in estimate resulting in lower tax rates on French patent income and discrete benefits related to the release of tax reserves, partially offset by decreased benefit pertaining to differences between U.S. and foreign statutory tax rates. There was no change to the effective tax rate for the nine months ended September 30, 2011 compared to the same period in 2010.

As of September 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 $3 million to $7 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.