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Income Taxes
3 Months Ended
Sep. 28, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

11. 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 $55,000 for the three months ended September 28, 2013, primarily due to foreign tax of certain foreign entities and a nominal amount of state minimum taxes. The Company recorded a tax benefit of $13,000 for the three months ended September 29, 2012, primarily due to foreign tax of certain foreign entities and a nominal amount of state minimum taxes.

The Company had gross unrecognized tax benefits of approximately $7.1 million and $7.0 million as of September 28, 2013 and June 30, 2013, respectively. Approximately $6.1 million of the unrecognized tax benefit has been offset by a full valuation allowance. If all of these unrecognized tax benefits were recognized, approximately $0.2 million and $0.2 million, respectively, 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 1998 to 2013 remain open to examination by the U.S. and state tax authorities, and the tax years 2006 to 2013 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 September 28, 2013, the Company had accrued interest or penalties associated with unrecognized tax benefits of approximately $22,000.