LinkedIn 2011 Annual Report Download - page 95

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As of December 31, 2011, the Company had approximately $10.7 million in total unrecognized tax benefits.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
Balance—December 31, 2009 ......................... $ 2,887
Tax positions related to current year—additions ....... 1,805
Balance—December 31, 2010 ......................... $ 4,692
Tax positions related to current year—additions ....... 5,965
Balance—December 31, 2011 ......................... $10,657
If the $10.7 million of unrecognized tax benefits as of December 31, 2011 is recognized, approximately $6.1
million would decrease the effective tax rate in the period in which each of the benefits is recognized. The
remaining amount would be offset by the reversal of related deferred tax assets on which a valuation allowance is
placed. The Company does not expect any material changes to its unrecognized tax benefits within the next
twelve months.
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.
There were no interest and penalties associated with the unrecognized tax benefits accrued. As of December 31,
2011 and 2010, penalties and interest were immaterial.
The Company files income tax returns in the U.S. federal jurisdiction as well as many U.S. states and
foreign jurisdictions. The tax years 2003 to 2010 remain open to examination by the major jurisdictions in which
the Company is subject to tax. Fiscal years outside the normal statute of limitation remain open to audit by tax
authorities due to tax attributes generated in those early years which have been carried forward and may be
audited in subsequent years when utilized.
The Company does not provide for federal income taxes on the undistributed earnings of its foreign
subsidiaries, as such earnings are to be reinvested indefinitely. It is not practicable to determine the income tax
liability that might be incurred if these earnings were to be repatriated.
14. Segment and Geographic Revenue Information
The Company considers operating segments to be components of the Company in which separate financial
information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding
how to allocate resources and in assessing performance. The chief operating decision maker for the Company is
the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a
consolidated basis, accompanied by information about revenue by product line and geographic region for
purposes of allocating resources and evaluating financial performance. The Company has one business activity
and there are no segment managers who are held accountable for operations, operating results or plans for levels
or components below the consolidated unit level. Accordingly, the Company has determined that it has one
operating segment, and therefore, one reportable segment.
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