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Income Taxes
9 Months Ended
Sep. 27, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
We recorded income tax expense of approximately $2.3 million (effective tax rate of 47.2%) for the three months ended September 27, 2014 compared to an income tax benefit of approximately $0.1 million (effective tax benefit rate of 1.9%) for the three months ended September 28, 2013. The effective tax rate for for the three months ended September 27, 2014 did 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 September 28, 2013 included a federal R&D tax credit benefit of approximately $0.7 million. In addition, the effective tax rate for the three months ended September 27, 2014 included a total of approximately $0.9 million additional tax expense as a result of lowering our Qualified Domestic Production Activities Deduction due to lower taxable income as a result of tax returns filed or to be filed.
We recorded income tax expense of approximately $7.7 million (effective tax rate of 35.9%) for the nine months ended September 27, 2014 compared to approximately $0.8 million (effective tax rate of 5.4%) for the nine months ended September 28, 2013. The effective tax rate for for the nine months ended September 27, 2014 did not include a benefit from the federal R&D tax credit as it expired on December 31, 2013. The nine months ended September 28, 2013 included a federal R&D tax credit benefit of approximately $3.7 million. This amount included approximately $2.0 million of 2012 federal research and development tax credits benefit recognized in the nine months ended September 28, 2013 as a result of the American Taxpayer Relief Act of 2012 (the “Act”) passed in January 2013. The Act included an extension of the federal R&D tax credit for amounts paid or incurred during 2012 and 2013.
Our unrecognized tax benefits were approximately $2.6 million both as of September 27, 2014 and December 31, 2013, respectively. 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 $0.4 million in the next twelve months.