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Income Taxes
6 Months Ended
Jun. 28, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The benefit from income taxes for the second quarter and first half of 2014 was approximately $14.3 million and $17.3 million, respectively. The provision for income taxes for the second quarter of 2013 was approximately $4.2 million, while the benefit from income taxes for the first half of 2013 was approximately $0.7 million. The effective income tax rate of a benefit of approximately 24.0% for the first half of 2014 differs from the United States federal statutory rate of a benefit of 35% principally as a result of non-deductible goodwill impairment, U.S. tax on unremitted earnings, losses in certain jurisdictions that cannot be benefited, and uncertain tax positions, partially offset by the impact of foreign rates. Compared to the United States federal statutory rate of a benefit of 35%, the effective income tax rate of a benefit of approximately 16.3% for the first half of 2013 differs principally as a result of losses in certain jurisdictions that cannot be benefited and the settlement of an uncertain tax position during the first quarter of 2013.

The Company has recorded approximately $3.8 million of realized tax benefits related to deductions for share-based compensation in excess of the corresponding book expense to additional paid in capital in the first half of 2014. The Company has approximately $3.1 million of remaining excess tax benefits that will be recognized as a credit to additional paid in capital when the benefits are realized on a tax return.  The Company accounts for share-based compensation deductions on the basis that these are the last tax benefits that are utilized.

As of January 1, 2014, the Company had a liability of approximately $20.8 million for unrecognized tax benefits related to various federal, foreign and state income tax matters.  As a result of additional provisions during the first half of 2014 and utilization of loss carryforwards, the liability for uncertain tax positions increased to approximately $27.6 million at June 28, 2014. 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 $31.5 million and $30.7 million at June 28, 2014 and December 31, 2013, respectively.

As of June 28, 2014 and December 31, 2013, the amount of uncertain tax positions that will impact the Company's effective tax rate is approximately $11.5 million and $10.9 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 June 28, 2014, the Company had approximately $3.9 million in unrecognized benefits relating to various tax issues, for which the statute of limitations is expected to expire in 2014.

As of June 28, 2014 and December 31, 2013, the total amount of accrued interest and penalties related to uncertain tax positions was approximately $4.4 million and $4.0 million, respectively.  The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state taxes.

As of June 28, 2014, the Company had recorded a liability of approximately $0.8 million for potential income tax liabilities and approximately $0.7 million for additional VAT liabilities related to a tax audit at one of the Company's foreign subsidiaries for the years 2007 - 2012. During the first half of 2014, the Company reached an agreement with taxing authorities to settle the years 2007 and 2008 for approximately $0.2 million for income tax liabilities and approximately $0.2 million for VAT liabilities, which will be payable in quarterly installments over a three year period commencing April 2014. The years 2009 through 2012 remain open.