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INCOME TAXES
9 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES 
For the quarter and nine months ended June 30, 2013, we recorded an income tax benefit of $45 thousand and an income tax provision of $6.3 million, respectively. For the quarter and nine months ended July 1, 2012, we recorded an income tax provision of $4.2 million and $8.5 million, respectively. The difference in our effective tax rate from the U.S. statutory rate of 35 percent is primarily a result of income being taxed in foreign jurisdictions at a lower rate, which is partially offset by jurisdictions where we have not recorded an income tax benefit for the current period losses as they are not expected to be realized in the foreseeable future. Our effective tax rates for the quarter and nine months ended June 30, 2013 varies significantly to the comparable prior year periods primarily because of changes in the mix of income by jurisdiction, a decrease in unrecognized tax benefits and the impact of exchange rates on certain foreign deferred tax assets.  The effective tax provision for each period was the combined calculated tax expenses and benefits for various jurisdictions.
We file U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2007 through 2012 tax years generally remain subject to examination by federal tax authorities, most state tax authorities and in significant foreign jurisdictions. Each quarter, we reassess our uncertain tax positions for additional unrecognized tax benefits, interest and penalties, and deletions due to statute expirations. Based on federal, state and foreign statute expirations in various jurisdictions, we recorded a decrease in unrecognized tax benefits of $1.3 million during the nine months ended June 30, 2013 and anticipate additional decreases in unrecognized tax benefits of $16.6 million within the next twelve months.
We establish liabilities for possible assessments by tax authorities resulting from known tax exposures including, but not limited to, international tax issues and certain tax credits. The Internal Revenue Service (“IRS”) is currently examining the Company's income tax returns for fiscal years 2007 through 2009. As of June 30, 2013, the IRS has raised questions primarily related to transfer pricing. Management believes that the Company's position is appropriate and that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management's expectations, the Company would be required to adjust its provision for income tax in the period such resolution occurs. While the Company believes its reported results are accurate, any significant adjustments could have a material adverse effect on the Company's results of operations, cash flows and financial position if not resolved within expectations.