Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of income (loss) from continuing operations before income taxes

Income (loss) from continuing operations before income taxes was as follows for the years ended (in thousands):



	2013			2012			2011
Domestic	$	(70,385	)	$	(26,572	)	$	(8,981	)
Foreign	(1,389		)	1,764			4,832
	$	(71,774	)	$	(24,808	)	$	(4,149	)

Schedule of components of income tax expense (benefit) on income (loss) from continuing operations

Income tax expense (benefit) on income (loss) from continuing operations consisted of the following for the years ended (in thousands):



	2013			2012			2011
Current tax expense (benefit):
Federal	$	—		$	—		$	(4,113	)
Foreign	977			295			1,361
State	888			874			436
	1,865			1,169			(2,316		)
Deferred tax expense (benefit):
Federal	2,659			40,703			6,741
Foreign	(1,421		)	(748		)	1,000
State	10,650			14,596			(880		)
	11,888			54,551			6,861
Income tax expense	$	13,753		$	55,720		$	4,545

Schedule of effective income tax rate reconciliation

A reconciliation of the expected tax benefit based on the federal statutory tax rate to the Company’s actual income tax expense is summarized as follows for the years ended (in thousands):



	2013			2012			2011
Expected tax benefit at federal statutory income tax rate	$	(25,121	)	$	(8,683	)	$	(1,452	)
State and local income tax (benefit) expense	(1,706		)	(1,075		)	1,807
Change in valuation allowance	34,049			55,374			(2,592		)
Change in contingency reserves	(105		)	(94		)	(84		)
Non-U.S. tax rate differences	42			(1,063		)	670
Non-deductible expenses	3,260			2,426			6,847
Change in state tax rates	(272		)	1,564			(547		)
Expiration of stock option contracts	968			7,007			—
Other	2,638			264			(104		)
Income tax expense	$	13,753		$	55,720		$	4,545

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities of the Company, were as follows (in thousands):



	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	108,580		$	106,393
Compensation and benefit related accruals	35,238			60,047
Foreign tax credit carryforwards	7,456			9,011
Alternative minimum tax credit carryforwards	8,242			8,819
Accounts receivable	2,075			1,928
Inventory	2,682			2,504
Restructuring accruals	9,985			11,850
Accrued tax and interest	1,645			1,540
Other	9,958			7,719
Valuation allowance	(110,754		)	(69,241		)
Total deferred tax assets	75,107			140,570

Deferred tax liabilities:
Property, plant and equipment	(44,804		)	(48,912		)
Goodwill and other intangible assets	(56,376		)	(71,187		)
Other	(9,203		)	(10,242		)
Total deferred tax liabilities	(110,383		)	(130,341		)
Net deferred tax (liability) asset	$	(35,276	)	$	10,229

The net deferred tax (liability) asset included the following (in thousands):



	2013			2012
Current deferred tax asset (included in prepaid and other current assets)	$	7,823		$	15,567
Current deferred tax asset (included in assets of discontinued operations - current)	—			83
Long-term deferred tax liability (included in other liabilities)	(43,099		)	(4,541		)
Long-term deferred tax liability (included in liabilities of discontinued operations - long-term)	—			(880		)
Total	$	(35,276	)	$	10,229

Schedule of changes of the unrecognized tax benefits

The Company’s unrecognized tax benefit activity for the years ended 2013, 2012 and 2011 was as follows (in thousands):



Unrecognized tax benefit – As of year end 2010	$	2,226
Gross decreases - tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2011	2,226
Gross decreases - tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2012	2,226
Gross decreases - tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2013	$	2,226