10. Income Taxes

Our provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items and any applicable credits. Our income tax expense is primarily a non-cash charge due to the utilization of U.S. net operating losses.

The following table presents the provision for income taxes and the effective tax rates (in thousands):



	Three Months Ended				Nine Months Ended
	December 27,		December 28,		December 27,		December 28,
	2014		2013		2014		2013
Income before income taxes	$	42,261	$	52,963	$	61,619	$	135,437
Provision for income taxes	$	19,532	$	11,463	$	27,790	$	39,928
Effective tax rate		46.2%		21.6%		45.1%		29.5%

Our income tax expense for the third quarter and first nine months of fiscal year 2015 was above the federal statutory rate primarily due to the inclusion of foreign losses in the period from the close of the Acquisition to the end of the period at foreign statutory rates below the U.S. federal statutory rate. The impact of these foreign losses was partially offset by the federal research development credit, which was extended through December 31, 2014 by the Tax Increase Prevention Act of 2014, which was enacted on December 19, 2014. Our income tax expense for the third quarter and first nine months of fiscal year 2014 was below the federal statutory rate primarily due to the effect of a one-time tax benefit of $6.3 million related to export benefits provided by the Extraterritorial Income Exclusion Act, an elective provision of the Internal Revenue Code that was in effect for prior years. Our income tax expense for the third quarter and first nine months of fiscal year 2014 was further reduced by the federal research development credit, which was extended through December 31, 2013 by the American Taxpayer Relief Act of 2012, which was enacted on January 2, 2013.

We had no unrecognized tax benefits as of December 27, 2014.

We accrue interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. As of December 27, 2014, the balance of accrued interest and penalties was zero. No interest or penalties were incurred during the first nine months of fiscal year 2015 or 2014.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. Fiscal years 2012 through 2014 remain open to examination by the major taxing jurisdictions to which we are subject.