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Income Taxes
6 Months Ended
Jun. 29, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which the Company operates. However, losses in certain jurisdictions and discrete items, such as the resolution of uncertain tax positions, are treated separately.
The Company’s effective income tax rate for the second quarter and six months of 2014 was 28.3% and 27.2%, respectively. The Company's effective income tax rate for the second quarter and six months of 2013 was 27.6% and 26.3%, respectively. The second quarter of 2014 included net tax expense for discrete items of $0.2 million and the first six months of 2014 included net tax benefits for discrete items of $2.1 million, compared with net tax benefits for discrete items of $0.9 million and $3.6 million for the second quarter and first six months of 2013, respectively. The net tax benefits for the first six months of 2014 included the remeasurement of uncertain tax positions due to a favorable resolution of a tax matter. The net tax benefits in 2013 primarily related to the retroactive reinstatement of certain tax benefits and credits from the enactment of the American Taxpayer Relief Act of 2012 signed into law on January 2, 2013. Excluding net discrete tax benefits/expense in all periods, the effective tax rates would have been 28.1% for the second quarter and 28.7% for the first six months of 2014 and 29.1% for the second quarter of 2013 and 29.5% for the first six months of 2013.
During the next twelve months, it is reasonably possible that expirations of the statutes of limitations could reduce unrecognized tax benefits by $4.9 million. Of the $4.9 million, $0.1 million would not impact tax expense as it would be offset by the reversal of deferred tax assets.