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Income Taxes
6 Months Ended
Jul. 02, 2011
Income Tax Disclosure [Abstract]  
Income Taxes
Note 3 – Income Taxes
 
The provision for income taxes consists of provisions for federal, state, and foreign income taxes. The effective tax rates for the periods ended July 2, 2011 and July 3, 2010 reflect the Company’s expected tax rate on reported income from continuing operations before income tax and tax adjustments. The Company operates in a global environment with significant operations in various locations outside the United States. Accordingly, the consolidated income tax rate is a composite rate reflecting the Company’s earnings and the applicable tax rates in the various locations where the Company operates.
 
In January 2011, a new tax law was enacted in Israel which effectively lowered the corporate income tax rate on certain types of income earned after December 31, 2010. Accordingly, the Company’s deferred tax assets in Israel were written down to reflect the lower rate and a one-time tax expense of $10.0 million was recorded in the consolidated condensed statement of operations during the six fiscal months ended July 2, 2011.
 
During the six fiscal months ended July 2, 2011, the liabilities for unrecognized tax benefits increased by $4.7 million on a net basis, principally due to increases for positions taken during prior periods, interest, and foreign exchange effects.