Income taxes (Tables)

12 Months Ended

Dec. 28, 2012

Schedule of loss before income tax, domestic and foreign

For the years ended December 28, 2012, December 30, 2011, and December 31, 2010, our loss from continuing operations before income taxes was as follows (in thousands):

	2012			2011			2010
Domestic	$	(138,770	)	$	(14,242	)	$	1,293
Non-U.S.		113,999			(10,413	)		(26,339	)
Total	$	(24,771	)	$	(24,655	)	$	(25,046	)

Components of income tax expense

For the years ended, December 28, 2012, December 30, 2011, and December 31, 2010, our income tax expense was as follows (in thousands):

Current:	2012			2011			2010
Federal	$	602		$	655		$	--
State and local		102			36			88
Non-U.S.		8,234			(1,971	)		3,765
		8,938			(1,280	)		3,853
Deferred:
Federal		124			10,912			(245	)
State and local		-			5,777			(37	)
Non-U.S.		(2,083	)		7,834			(880	)
		(1,959	)		24,523			(1,162	)
Net tax expense	$	6,979		$	23,243		$	2,691

Effective tax rate reconciliation

A reconciliation of the U.S statutory federal income tax rate with our effective income tax rate was as follows:

	2012			2011			2010
U.S. statutory federal income tax rate		35	%		35	%		35	%
Decrease (increase) resulting from:
State and local income taxes, net of federal tax effect		(1	)		4			--
Non-deductible expenses and other		(62	)		(20	)		(16	)
Withholding taxes		(9	)		(5	)		(2	)
Non-U.S. income subject to U.S. income tax		-			5			(8	)
Tax credits		62			16			15
Tax effect of intangible impairment		-			--			(35	)
Tax effect of valuation allowance and Section 382/383 limitations		(214	)		(129	)		--
Foreign rate differential		161			--			--
Effective tax rate		(28	) %		(94	) %		(11	) %

Unrecognized tax benefits reconciliation

A reconciliation of the total gross unrecognized tax benefits for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 was as follows (in thousands):

	2012			2011			2010
Unrecognized tax benefits at the beginning of the year	$	17,300		$	17,686		$	23,237

Additions to tax positions related to current year		1,415			6,558			1,555
Reductions to tax positions related to prior years		(7,090	)		(1,846	)		(5,005	)
Lapses in statutes of limitation		(3,745	)		(5,098	)		(2,101	)

Unrecognized tax benefits at the end of the year	$	7,880		$	17,300		$	17,686

Income tax expense (benefit)

The income tax expense for December 28, 2012, December 30, 2011, and December 31, 2010 was as follows (in thousands):

	2012			2011			2010
Income tax expense	$	(6,979	)	$	(23,243	)	$	(2,691	)
Effective tax rate		(28	%)		(94	%)		(11	%)

Components of deferred tax assets and liabilities

Deferred tax assets and liabilities from continuing operations included the following (in thousands):

Assets:	2012			2011
Inventories	$	1,132		$	794
Plant and equipment		6,155			6,189
Vacation pay and other compensation		218			498
Pension expense		928			613
Stock awards		68			77
Accrued liabilities		1,522			1,788
Net operating losses – federal, state and foreign		22,216			40,130
Tax credits		10,780			20,770
Acquired intangibles		4,120			8,800
Other		8,246			124
Total deferred tax assets		55,385			79,783
Valuation allowance		(44,697	)		(67,556	)
Net deferred tax assets	$	10,688		$	12,227

Liabilities:
Foreign earnings not permanently invested	$	9,535		$	11,494
Restructuring		1,551			1,551
Acquired intangibles		529			461
Other		3,282			1,309
Total deferred tax liabilities		14,897			14,815
Net deferred tax liabilities	$	(4,209	)	$	(2,588	)

Short-term deferred tax assets	$	1,056		$	1,332
Short-term deferred tax liabilities		(92	)		(3,816	)
Long-term deferred tax assets		2,443			8,549
Long-term deferred tax liabilities		(7,616	)		(8,653	)
Net deferred tax liabilities	$	(4,209	)	$	(2,588	)