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Note 8 Income Taxes
6 Months Ended
Mar. 29, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Income Taxes

The Company estimates its annual effective income tax rate at the end of each quarterly period. The estimate takes into account the geographic mix of expected pre-tax income (loss), expected total annual pre-tax income (loss), enacted changes in tax laws, implementation of tax planning strategies and possible outcomes of audits and other uncertain tax positions. To the extent there are fluctuations in any of these variables during a period, the provision for income taxes may vary.

In March 2014, a foreign tax authority completed its audit of the Company’s 2006 tax return and issued an assessment challenging certain of the Company’s tax positions, most notably intercompany transfer pricing. The Company disagrees with the assessment and will vigorously contest it through the appropriate administrative procedures. In accordance with the accounting requirements for uncertain tax positions, the Company has concluded that it will more likely than not prevail in all positions based upon their technical merits. The final outcome of this audit cannot be reliably predicted and could materially affect the Company’s financial statements if not resolved in a manner consistent with the Company’s tax positions.
The Company is subject to income taxation in many jurisdictions around the world and is therefore also subject to examination by domestic and foreign tax authorities. In connection with these examinations, the Company frequently faces challenges regarding the amount of taxes due. These challenges can involve complex issues, interpretations and judgments made by the Company related to the timing, nature and amount of deductions and the allocation of income between various tax jurisdictions. Resolution of these examinations may span many years, particularly if subject to negotiation or litigation. The Company believes its reserves for uncertain tax positions are adequate.
The provision for income taxes for the second quarter of 2014 and 2013 was $17.8 million and $13.0 million, respectively, and $28.4 million and $16.0 million for the six months ended March 29, 2014 and March 30, 2013, respectively. The increase for both the three and six month periods was primarily due to an increase in pre-tax income, changes in the jurisdictional mix of where income was earned and discrete events including changes in tax law in certain foreign jurisdictions. As a result of tax law and tax rate changes in certain foreign jurisdictions, the Company recorded a benefit of $3.1 million in the first quarter of 2014 related to revaluation of certain deferred tax assets.