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Income Tax
3 Months Ended
Sep. 28, 2013
Income Tax  
Income Tax

Note 12. Income Tax

 

The Company recorded an income tax expense of $0.5 million and $3.4 million for the three months ended September 28, 2013 and September 29, 2012, respectively.

 

The income tax expense recorded for the three months ended September 28, 2013 and September 29, 2012, primarily relate to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the respective year. A tax benefit of $4.2 million was recorded in the Company’s income tax provision for the three months ended September 28, 2013 related to the income tax intraperiod tax allocation rules in relation to other comprehensive income.  In accordance with authoritative guidance, the current quarter benefit may reverse during the year.

 

The income tax expense or benefit recorded differs from the expected tax expense or benefit that would be calculated by applying the federal statutory rate to the Company’s loss or profit before income taxes primarily due to the increases in valuation allowance for deferred tax assets attributable to the Company’s domestic and foreign losses from continuing operations and due to the income tax benefit recorded in continuing operations under the income tax intraperiod tax allocation rules.

 

As of September 28, 2013 and June 29, 2013 the Company’s unrecognized tax benefits totaled $81.9 million and $80.7 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $24.9 million accrued for the payment of interest and penalties at September 28, 2013. The unrecognized tax benefits that may be recognized during the next twelve months is approximately $22.1 million.