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

For the three months ended September 27, 2014 and September 28, 2013, we recorded an income tax provision of approximately $1.0 million and $0.4 million, respectively. For the nine months ended September 27, 2014 and September 28, 2013, we recorded an income tax provision of approximately $5.0 million and $3.0 million, respectively. The income tax provision for the three and nine months ended September 27, 2014 represents tax at the federal, state and foreign statutory tax rates adjusted for non-deductible stock compensation, withholding taxes, changes in uncertain tax positions as well as other non-deductible items in the United States and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 35% and our effective tax rate is primarily due to income earned in lower tax rate jurisdictions, for which no U.S. income tax has been provided, because we intend to permanently reinvest these earnings outside of the United States.

We are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. We are no longer subject to federal, state and local, or foreign income tax examinations for years before 2011, 2010 and 2008, respectively. However, net operating loss ("NOL") and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which we used the attributes.

Our U.S. and French income tax returns are currently under examination for 2011 and 2012, as well as our Singapore income tax return for 2012. We are not under examination in any other jurisdictions.

We believe that it is reasonably possible that $0.1 million of unrecognized tax benefits and less than $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $0.1 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to filings for years that will no longer be subject to examination under expiring statutes of limitations. As a result of the ongoing examination of our 2011 and 2012 U.S. federal tax returns we have reduced our federal and state credit carryforwards. Correspondingly we have reduced our federal and state unrecognized tax benefits by $4.5 million and $0.2 million, respectively. Due to the valuation allowance against the federal and state credit deferred tax assets, both the reduction to the credit carryforwards and the related uncertain tax positions did not impact our provision for income taxes.

We have U.S. federal NOL carryforwards that expire at various dates between 2023 and 2032. We have state net operating loss carryforwards that expire at various dates from 2014 through 2032. We also have federal and state credit carryforwards, some not expiring and others expiring at various dates from 2014 through 2033.

We are not currently paying U.S. federal income taxes and do not expect to pay such taxes until we fully utilize our tax NOL and credit carryforwards. We expect to pay a nominal amount of state income tax. We are paying foreign income taxes, which are reflected in the Provision for income taxes in our Consolidated Statements of Operations and are primarily related to the cost of operating offshore subsidiaries. We accrue interest and penalties related to uncertain tax positions in the Provision for income taxes.