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Income Taxes
6 Months Ended
Dec. 28, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Our effective tax rate varies from the U.S. federal statutory rate of 35% due to results of foreign operations that are subject to income taxes at different statutory rates and certain jurisdictions where we cannot recognize tax benefits on current losses. We accrued tax expenses for foreign jurisdictions that are anticipated to be profitable for fiscal 2013. We have a number of years with open tax audits which vary from jurisdiction to jurisdiction. Our major tax jurisdictions include the U.S., Singapore and Nigeria. The earliest years still open and subject to potential audits for these jurisdictions are as follows: U.S. — 2003; Singapore — 2006; and Nigeria — 2004.
During the current quarter, we received several preliminary assessments from the taxing authority in certain countries challenging certain of the tax benefits. Although we intend to protest these assessments and defend the positions that we have taken with regard to these tax benefits, at this time we are unable to conclude that it is more likely than not that our positions will prevail and accordingly have increased our uncertain tax liability during the current quarter by $9.9 million.

The determination of our provision for the second quarter and first two quarters of fiscal 2013 and 2012 was based on our estimated annual effective tax rate adjusted for losses in separate jurisdictions for which no tax benefit can be recognized. In addition, jurisdictions where we are unable to estimate an annual effective tax rate are excluded from the estimated annual effective tax rate. The tax expense for the second quarter and first two quarters of fiscal 2013 was primarily attributable to an increase in unrecognized tax benefit of $9.9 million and $11.4 million, respectively. The increase was in response to recent assessments of past due income tax in certain countries that we are currently analyzing but as to which, at this time, we are unable to state that it is more likely than not that we will be able to utilize these tax benefits.
We account for interest and penalties related to unrecognized tax benefits as part of our provision for federal, foreign, and state income taxes.