Income taxes

3 Months Ended

Mar. 29, 2013

Income taxes [Abstract]

Income taxes

(6)           Income taxes

The income tax expense for the three months ended March 29, 2013 and March 30, 2012 was as follows (in thousands):

	March 29, 2013			March 30, 2012
Income tax expense	$	434		$	657
Effective tax rate		(6	)%		(18	)%

The Company's effective tax rate is a blended rate for different jurisdictions in which the Company operates. We continue to provide a full valuation allowance against losses in the majority of jurisdictions in which we operate.  The Company will continue to evaluate the realizability of its net deferred tax assets on an ongoing basis to identify whether any significant changes in circumstances or assumptions have occurred that could materially affect the realizability of deferred tax assets and expect to release the valuation allowance when it has sufficient positive evidence, including, but not limited to, cumulative earnings in successive recent periods, to overcome the negative evidence the Company has encountered with its recent history of cumulative losses.  The change in the effective tax rate in the first three months of 2013 versus the first three months of 2012 was primarily due to the occurrence of losses in certain jurisdictions, for which we are unable to realize as a tax benefit.

We recognize interest and penalties, if any, related to income tax matters as income tax expense.  As of March 29, 2013, we have approximately $0.4 million accrued for interest and penalties related to uncertain income tax positions.  The accrual balance for interest and penalties increased by less than $0.1 million during the three months ended March 29, 2013.

At March 29, 2013, we had approximately $7.9 million of unrecognized tax benefits, unchanged from the year ended December 28, 2012.  Approximately $4.0 million is recorded as other long-term liabilities in the Unaudited Condensed Consolidated Balance Sheets.