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Income Taxes
3 Months Ended
Mar. 29, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
We recorded an income tax expense of approximately $2.2 million (an effective tax rate of 32.5%) in the first quarter of 2014, compared to an income tax benefit of approximately $1.2 million (an effective tax benefit rate of 49.5%) in the first quarter of 2013.
The effective tax rate for for the three months ended March 29, 2014 does not include a benefit from the federal research and development (“R&D”) tax credit as it expired on December 31, 2013. The three months ended March 30, 2013 included approximately $2.5 million of federal research and development tax credit benefit. This amount included approximately $2.0 million of 2012 federal research and development tax credit benefits recognized in the first quarter 2013 as a result of the American Taxpayer Relief Act of 2012 (the “Act”), passed in January 2013. This Act included an extension of the federal research and development tax credit for the amounts paid or incurred after December 31, 2011 and before January 1, 2014.
Our unrecognized tax benefits were approximately $2.6 million at both March 29, 2014 and December 31, 2013. Most of these amounts, if recognized, would affect the annual income tax rate. It is reasonably possible that the unrecognized tax benefits could be reduced by approximately $0.2 million in the next twelve months.