XML 40 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
10. Income Taxes
 3 Months Ended
Mar. 31, 2012
Income Taxes [Abstract]  
Income Taxes
10.INCOME TAXES

Our effective tax rate was 33% and 32% for the three months ended March 31, 2012 and 2011, respectively. The effective tax rates for both periods were lower than the U.S. statutory rate primarily due to tax benefits from differences between U.S. and foreign statutory tax rates and research and development tax credits. The effective tax rate for the first quarter of 2011 also reflected a tax benefit from nontaxable dividend income. The first quarter of 2012 effective tax rate does not include tax benefits from U.S. federal research credits and nontaxable dividend income that both expired in 2011.
   
As of March 31, 2012, 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. 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.