XML 20 R14.htm IDEA: XBRL DOCUMENT v2.3.0.15
Income Taxes
3 Months Ended
Oct. 01, 2011
Income Tax Disclosure [Abstract] 
Income Tax Disclosure [Text Block]
Income Taxes
The Company provides for income taxes during interim reporting periods using the discrete period method. The Company also maintains a liability to cover the cost of additional tax exposure items pertaining to the filing of federal and state income tax returns, as well as filings in foreign jurisdictions. Each of these filing jurisdictions may audit the tax returns filed and propose adjustments. Adjustments may arise from a variety of factors, including different interpretations of statutes and regulations. The Company recorded a tax provision of $29,000 for the three months ended October 1, 2011 primarily due to foreign tax of certain foreign entities, state minimum, and state gross receipt taxes. The Company recorded a tax provision of $39,000 for the three months ended September 25, 2010 primarily due to foreign tax of certain foreign entities and a minor amount of state minimum taxes.
The Company had gross unrecognized tax benefits of approximately $8.3 million as of October 1, 2011 and June 30, 2011. Approximately $7.7 million of the unrecognized tax benefit has been offset by a full valuation allowance. If all of these unrecognized tax benefits were recognized, approximately $627,000 would benefit the income tax provision. In addition, the Company does not expect any material changes to the estimated amount of the liability associated with its uncertain tax positions within the next twelve months.
The Company files income tax returns in the U.S. federal jurisdiction, California and various state and foreign tax jurisdictions in which it has a subsidiary or branch operation. The tax years 2001 to 2010 remain open to examination by the U.S. and state tax authorities, and the tax years 2005 to 2010 remain open to examination by the foreign tax authorities.

Adept’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of October 1, 2011, the Company had accrued interest or penalties associated with unrecognized tax benefits of approximately $82,000.