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Income Taxes
9 Months Ended
Dec. 28, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

Income Tax Expense
The Company’s provision for income taxes for the three and nine months ended December 28, 2013 and December 29, 2012 has been calculated by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) for the three and nine months ended December 28, 2013 and December 29, 2012.

The Company’s income tax expense was $8.2 million and $11.3 million for the three and nine months ended December 28, 2013, respectively, and $6.0 million and $12.1 million for the three and nine months ended December 29, 2012, respectively. The Company’s effective tax rate was 56.7% and 45.3% for the three and nine months ended December 28, 2013, respectively, and 132.0% and (48.4)% for the three and nine months ended December 29, 2012, respectively. The Company's effective tax rate for both the third quarter of fiscal 2014 and the third quarter of fiscal 2013 differed from the statutory rate primarily due to tax rate differences in foreign jurisdictions, state income taxes, domestic tax credits generated, adjustments to the valuation allowance limiting the recognition of the benefit of domestic deferred tax assets, and for fiscal 2014, adjustments to reduce the carrying value of United Kingdom (U.K.) deferred tax assets.

Deferred Taxes
The valuation allowance against net deferred tax assets has decreased in fiscal 2014 by $4.0 million from the $164.2 million balance as of the end of fiscal 2013. The Company intends to maintain a valuation allowance against its domestic net deferred tax assets until sufficient positive evidence exists to support its full or partial reversal. The amount of the deferred tax assets actually realized could vary depending upon the amount of taxable income the Company is able to generate in the various taxing jurisdictions in which the Company operates.

In July 2013, the Company sold its manufacturing facility located in the U.K., which generated its U.K. tax loss carryovers. U.K. tax loss carryovers can only be used to offset income generated by the same trade or business from which they arose. In connection with the sale, the deferred tax assets related to U.K. tax losses were written off and the related valuation allowance was reversed.

The Company has outstanding domestic federal and state tax net operating loss (“NOLs”) carry-forwards that began or will begin to expire in fiscal 2019 and fiscal 2014, respectively, if unused. The use of the NOLs that were acquired in prior year acquisitions is subject to certain annual limitations under Internal Revenue Code Section 382 and similar state tax provisions.

Uncertain Tax Positions
The Company’s gross unrecognized tax benefits increased from $37.9 million as of the end of fiscal 2013 to $39.1 million as of the end of the third quarter of fiscal 2014, with the change arising from a $1.0 million increase related to tax positions taken with respect to the current fiscal year and a $0.2 million increase related to tax positions taken with respect to prior fiscal years.

U.S. federal tax returns through fiscal 2009, North Carolina tax returns through fiscal 2008, and German tax returns through calendar year 2007 have been examined by their respective taxing authorities. Subsequent tax years in each of those jurisdictions remain open for examination. Other material jurisdictions that are subject to examination by tax authorities are California (fiscal 2009 through present), the U.K. (fiscal 2011 through present), and China (calendar year 2003 through present).