4. Accounting for Uncertainty in Income Taxes
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The Company applies the accounting guidance related to accounting for uncertainty in income
taxes. This guidance prescribes a recognition threshold and a measurement attribute for the
financial statement recognition and measurement of tax positions taken or expected to be taken
in a tax return. For those benefits to be recognized, a tax position must be more likely than
not to be sustained upon examination by taxing authorities. At June 30, 2011, we had a liability for unrecognized tax benefits of $16.2 million ($5.8 million
of which, if recognized, would favorably impact our effective tax rate). As of June 30, 2010,
we had a liability for unrecognized tax benefits of $14.9 million primarily related to foreign
operations. In addition, the Company recognizes interest and penalties that could be applied to
uncertain tax positions in income tax expense. As of June 30,
2011 and December 31, 2010, we had
approximately $7.7 million and $7.0 million, respectively, of accrued interest and penalties
that could be applied to uncertain tax positions. |
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