Income taxes

3 Months Ended

Mar. 28, 2014

Income taxes [Abstract]

Income taxes

(5) Income taxes

The income tax expense for the three months ended March 28, 2014 and March 29, 2013 was as follows (in thousands):

	March 28, 2014			March 29, 2013
Income tax expense	$	472		$	434
Effective tax rate		(5.5	)%		(6.5	)%

The Company’s effective tax rate is a blended rate for different jurisdictions in which the Company operates, and could vary significantly based on the distribution of earnings. 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 three months ended March 28, 2014 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.  There could be volatility in the quarterly effective tax rate in future quarters due to this mix.

At March 28, 2014, we had approximately $3.6 million of unrecognized tax benefits, which is unchanged from the year ended December 27, 2013.  We expect our unrecognized tax benefits to decrease by $1.8 million within the next twelve months due to the expiration of statutes of limitation.   In connection with this decrease in our unrecognized tax benefits, we expect to record a $0.1 million tax benefit. We recognize interest and penalties, if any, related to income tax matters as income tax expense.  As of March 28, 2014, we have approximately $0.4 million accrued for interest and penalties related to uncertain income tax positions.  The accrual balance for interest and penalties decreased by less than $0.1 million during the three months ended March 28, 2014.