XML 52 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Tax
6 Months Ended
Mar. 29, 2013
Income Tax Disclosure [Abstract]  
Income Tax
Income Taxes
Our effective tax rate is based on a projection of our annual fiscal year results, and is affected each quarter-end by several factors. These include changes in our projected fiscal year results, recurring items such as tax rates and relative income earned in foreign jurisdictions as well as discrete items that may occur in, but are not necessarily consistent between periods.
Our effective tax rate was 27% and 28% for the second quarter of fiscal 2013 and fiscal 2012, respectively. Our effective tax rate for the second quarter of fiscal 2013 was lower than the second quarter of fiscal 2012 primarily due to additional benefits recognized from the reinstatement of the federal research credits in January 2013.
Our effective tax rate was and 26% and 28% for the fiscal year-to-date period ended March 29, 2013 and March 30, 2012, respectively. Our effective tax rate for the fiscal year-to-date period ended March 29, 2013 was lower than the fiscal year-to-date period ended March 30, 2012 primarily due to the same factor discussed above.
As of March 29, 2013, the total amount of gross unrecognized tax benefits was $20.0 million, of which $13.5 million, if recognized, would reduce our effective tax rate. Our liability for unrecognized tax benefits is classified within other non-current liabilities in our condensed consolidated balance sheets.
Withholding Tax.    We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities. We reduce our income tax provision for withholding taxes in various jurisdictions for allowable foreign tax credits. Withholding tax remittances were $11.9 million and $10.2 million in the second quarter of fiscal 2013 and fiscal 2012, respectively, and $21.3 million and $21.4 million in the fiscal year-to-date period ended March 29, 2013 and March 30, 2012, respectively.