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Income Taxes
6 Months Ended
Dec. 28, 2013
Income Taxes [Abstract]  
INCOME TAXES
10. INCOME TAXES
 
Accounting for Uncertainty in Income Taxes
 
The Company’s total amount of unrecognized tax benefits as of December 28, 2013 was $2,246,000.  $1,569,000 of this amount would affect the Company’s tax rate if recognized. In addition, as of December 28, 2013 the Company had accrued $187,000 of accumulated interest and penalties related to unrecognized tax benefits.
 
The Company’s effective tax rate may differ from the federal statutory rate primarily due to the permanent differences related to the benefit of foreign rate differentials, the benefit of generating federal research and development tax credits, income inclusions under Subpart F tax rules, and non-deductible share-based compensation from equity grants.
 
The Company is subject to examination by federal, foreign, and various state jurisdictions for the years 2006 through 2012. The Internal Revenue Service recently completed their examination of the federal tax returns for fiscal 2010 and 2011, and the Company made additional tax payments of approximately $192,000 for the two years.
 
Income Tax Expense
 
Income tax expense (benefit) for the six months ended December 28, 2013 and December 29, 2012 was ($100,000) and $5.3 million, respectively, and was comprised of foreign income taxes as well as domestic federal and state income tax and including the benefit from the release of tax reserves accrued under ASC 740-10. The income tax expense for the six months ended December 29, 2012 included a $5.0 million tax provision resulting from the intercompany transfer of intellectual property rights, inventory and fixed assets across different tax jurisdictions. As of December 28, 2013, the Company has recorded a valuation allowance of $5.1 million against its deferred tax assets.