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Income Taxes
3 Months Ended
Sep. 26, 2015
Income Taxes [Abstract]  
INCOME TAXES

10. INCOME TAXES

Income Tax Expense

Income tax expense for the three month periods ended September 26, 2015 and September 27, 2014 was $535,000 and $1.0 million, respectively, and was comprised of domestic federal and state income tax and foreign income tax. The effective tax rate for the three months ended September 26, 2015 was 13%, which resulted from the allocation of earnings between different tax jurisdictions and the inability to utilize losses in certain non-includable entities. The effective tax rate for the three months ended September 27, 2014 was 29%. As of September 26, 2015 and June 27, 2015, the Company has recorded a valuation allowance of $4.4 million against its deferred tax assets.

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, income inclusions under Subpart F tax rules, and non-deductible share-based compensation from equity grants.

Accounting for Uncertainty in Income Taxes

The Company’s total amount of unrecognized tax benefits as of September 26, 2015 was $2.3 million. Of this amount, $1.1 million would affect the Company’s effective tax rate if recognized. In addition, as of September 26, 2015 the Company had accrued $240,000 for any interest and penalties related to unrecognized tax benefits.

The Company is subject to examination by federal, foreign, and various state jurisdictions for the years 2009 through 2015.