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Income Taxes
9 Months Ended
Sep. 27, 2014
Income Taxes [Abstract]  
Income Taxes

NOTE 9.  Income Taxes  

  

The Company recorded a provision for income taxes of $3.1 million and $9.4 million for the three and nine months ended September 27, 2014, respectively, and a provision for income taxes of $4.6 million and $13.4 million for the three and nine months ended September 28, 2013, respectively.

 

The Company’s effective tax rate was 36% and 334% for the three months ended September 27, 2014 and September 28, 2013, respectively.  For each of the third quarters of 2014 and 2013, the difference between the Company’s effective tax rate and the 35% federal statutory rate results primarily from changes in accruals related to unrecognized tax benefits, non-deductible amortization of intangible assets, amortization of prepaid taxes, and book losses that are not benefitted for tax purposes, partially offset by earnings eligible for tax rates lower than the federal statutory rate.

 

The Company’s effective tax rate was 131% and (419%) for the nine months ended September 27, 2014 and September 28, 2013, respectively.  For each of the first nine months periods of 2014 and 2013, the difference between the Company’s effective tax rate and the 35% federal statutory rate results primarily from changes in accruals related to unrecognized tax benefits, non-deductible amortization of intangible assets, amortization of prepaid taxes, and book losses that are not benefitted for tax purposes, partially offset by foreign earnings eligible for tax rates lower than the federal statutory rate. 

 

As of September 27, 2014, the Company’s liability for unrecognized tax benefits on a world-wide consolidated basis was $40 million. The ultimate recognition of an amount different from this estimate would affect the Company’s effective tax rate.