XML 62 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes
3 Months Ended
Sep. 27, 2014
Income Tax Disclosure [Abstract]  
Income Taxes [Text Block]
INCOME TAXES

In the three months ended September 27, 2014 and September 28, 2013, the Company recorded an income tax provision (benefit) of $(5.5) million and $22.0 million, respectively. The Company’s effective tax rate for the three months ended September 27, 2014 and September 28, 2013 was (5.8)% and 17.6%, respectively.

The Company's federal statutory tax rate is 35%. The Company's effective tax rate for the three months ended September 27, 2014 was lower than the statutory tax rate primarily because earnings of foreign subsidiaries, generated primarily by our international operations managed in Ireland, were taxed at lower rates, and a $24.8 million discrete benefit for the favorable settlement of a Singapore tax issue, partially offset by stock-based compensation for which no tax benefit is expected.

The Company’s effective tax rate for the three months ended September 28, 2013 was lower than the statutory tax rate primarily because earnings of foreign subsidiaries, generated primarily by our international operations managed in Ireland, were taxed at lower rates, partially offset by stock-based compensation for which no tax benefit is expected.

The Company’s federal corporate income tax returns are audited on a recurring basis by the IRS. In fiscal year 2012 the U.S. Internal Revenue Service commenced an audit of the Company's federal corporate income tax returns for fiscal years 2009 through 2011, which is still ongoing.