(6)	Income taxes

The income tax expense for the nine months ended September 27, 2013 and September 28, 2012 was as follows (in thousands):

	September 27, 2013			September 28, 2012
Income tax expense	$	2,021		$	2,504
Effective tax rate		(11.3	)%		(14.5	)%

The Company’s effective tax rate is a blended rate for different jurisdictions in which the Company operates. We provide a full valuation allowance against losses in the majority of jurisdictions in which we operate. We will continue to evaluate the realizability of our 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. We expect to release the valuation allowance when we have 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 for the nine months ended September 27, 2013 versus the prior year comparative period was primarily due to the change in the distribution of where income was earned by the Company's operating entities. During the three months ended September 27, 2013, we also recorded an out-of-period adjustment to decrease income tax expense by $0.8 million. The adjustment relates to our income tax provision for the year ended December 28, 2012, and was determined to be immaterial to the prior year and current year financial statements.

We recognize interest and penalties, if any, related to income tax matters as income tax expense. As of September 27, 2013, we have approximately $0.5 million accrued for interest and penalties related to uncertain income tax positions. The accrual balance for interest and penalties increased by $0.2 million during the nine months ended September 27, 2013.

At September 27, 2013, we had approximately $3.6 million of unrecognized tax benefits, a net decrease of $4.3 million from the year ended December 28, 2012. The decrease is a result of the release of unrecognized tax benefits due to statute expiration. Of the $3.6 million of unrecognized tax benefits, approximately $1.4 million is recorded as other long-term liabilities and $2.2 million is recorded as an offset to deferred tax assets in the Unaudited Condensed Consolidated Balance Sheet as of September 27, 2013. In the second quarter of 2013, we implemented the accounting guidance regarding the presentation of unrecognized tax benefits when net operating losses and other tax credit carryforwards exist, which was ratified by the FASB in June 2013. The new standard required public companies to adopt the guidance in the interim periods of annual reporting periods beginning after December 15, 2013, however early adoption was permitted. As a result of the adoption, the Company reclassified $1.7 million of unrecognized tax benefits from long-term liabilities to deferred tax assets in the second quarter of 2013.

We expect approximately $2.2 million of unrecognized tax benefits to be released in the next twelve months due to the expiration of statute or settlement.