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Income Taxes
3 Months Ended
Mar. 30, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The benefit from income taxes for the first quarter of 2013 was approximately $4.9 million as compared to a provision for income taxes of approximately $1.6 million for the first quarter of 2012. The effective income tax rate of a benefit of approximately 24.5% for the first quarter of 2013 differs from the United States federal statutory rate of a benefit of 35% principally as a result of decreases related to tax credits and earnings from foreign operations taxed at lower rates, partially offset by increases related to state taxes and nondeductible expenses. The effective income tax rate for the first quarter of 2012 is not meaningful. Compared to the United States federal statutory rate of 35%, the effective income tax rate for the first quarter of 2012 reflects an increase in the valuation allowances related to certain deferred tax assets.

The increase in valuation allowance relates to losses of certain foreign subsidiaries and losses in certain domestic jurisdictions. The Company has determined, based on the history of losses at these subsidiaries, a valuation allowance is required for these loss carry-forwards since it is more likely than not that these loss carry-forwards will not be realized.

As of January 1, 2013, the Company had a liability of approximately $26.4 million for unrecognized tax benefits related to various federal, foreign and state income tax matters.  As a result of additional provisions during the first quarter of 2013 and reversals related to an audit settlement, the liability for uncertain tax positions at March 30, 2013 was approximately $24.5 million. The liability for uncertain tax positions is included in other long-term liabilities on the accompanying unaudited condensed consolidated balance sheet. The corresponding amount of gross uncertain tax benefits was approximately $33.0 million and $34.5 million at March 30, 2013 and December 31, 2012, respectively.

As of March 30, 2013 and December 31, 2012, the amount of uncertain tax positions that will impact the Company's effective tax rate is approximately $13.8 million and $14.6 million, respectively. The difference between the total amount of uncertain tax positions and the amount that will impact the effective tax rate represents the federal tax effect of state tax items, items that offset temporary differences, and items that will result in the reduction of other tax assets.

As of March 30, 2013, the Company had approximately $2.2 million in unrecognized benefits relating to various state tax issues, for which the statute of limitations is expected to expire in 2013. During the first quarter of 2013, the Company reached a settlement related to certain state income tax matters.  As a result, the Company settled total uncertain tax positions of approximately $2.3 million and related interest of approximately $0.8 million for approximately $0.7 million.  The settlement resulted in a tax benefit in the first quarter of 2013 of approximately $1.6 million, net of related federal tax effect.

As of March 30, 2013 and December 31, 2012, the total amount of accrued interest related to uncertain tax positions was approximately $2.3 million and $2.8 million, respectively.  The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state taxes.