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10. Income Taxes
 6 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes
10.INCOME TAXES

Our effective income tax rate was 26% and 31% for the three months ended June 30, 2012 and 2011, respectively. Our effective income tax rate was 29% and 31% for the first half of 2012 and 2011, respectively. The second quarter and first half of 2012 reflected a significant tax benefit related to an adjustment to the fair value of the QuantaLife contingent consideration. The effective income tax rates for all 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 second quarter of 2011 also reflected a tax benefit from nontaxable dividend income in Luxembourg. The second quarter and the first half of 2012 effective tax rates do not include tax benefits from U.S. federal research credits that expired in 2011 and nontaxable dividend income that terminated in 2011. For the second quarter and the first half of 2012 and 2011, our foreign taxes resulted primarily from taxable income earned in France and Switzerland. Switzerland has a statutory tax rate of approximately 19%, which is significantly lower than our U.S. statutory tax rate of 36.8%, including state taxes. Our effective tax rates for 2012 and 2011 were significantly reduced by French tax incentives related to our research and development activities.
   
As of June 30, 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 $2.9 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.