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Income Taxes
9 Months Ended
Sep. 28, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The income tax provision for the three and nine months ended September 28, 2014 was $8.8 million or an effective tax rate of 30.6% and $27.6 million or an effective tax rate of 36.0%, respectively. The income tax provision for the three and nine months ended September 29, 2013 was $10.4 million or an effective tax rate of 41.8% and $26.1 million or an effective tax rate of 37.3%, respectively. The decrease in the effective tax rate for the three and nine month periods ended September 28, 2014 compared to the same periods in the prior year was primarily caused by an increase in earnings in jurisdictions with tax rates lower than the U.S. statutory rate. The improved earnings in these jurisdictions resulted in a decrease in the forecasted effective tax rate compared to the same period of the prior year. Accordingly, the three months ended September 28, 2014 includes a tax benefit for the reduction in the forecasted rate on cumulative earnings. During the three and nine month periods ended September 29, 2013, the Company incurred losses in a jurisdiction where no tax benefit could be recorded. As a result, the forecasted earnings from this jurisdiction were excluded from the determination of the effective tax rate. The exclusion of these losses increased the effective tax rate for the three and nine months ended September 29, 2013.

The decrease in the effective tax rate for the three and nine month periods ended September 28, 2014, compared to the same periods in the prior year was partially offset by changes in U.S. tax law related to the research tax credit. On December 31, 2011, provisions allowing for the research tax credit expired. On January 2, 2013, the American Taxpayer Relief Act of 2012 reinstated the research credit, retroactive to January 1, 2012 through December 31, 2013. Accordingly, the entire benefit for the 2012 research credit of approximately $0.7 million was recognized during the nine months ended September 29, 2013. Additionally, the Company recorded credits related to 2013 in its tax provision for the three and nine month periods. As of September 28, 2014, the research credit has not been reinstated. Accordingly, no tax benefit has been recorded during the three and nine month periods ended September 28, 2014.

The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions resulting from the expiration of statutes of limitation in multiple jurisdictions in the next twelve months is approximately $0.8 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities.