5.	Income Taxes

Ordinarily, interim tax provisions are calculated using the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year. However, when a reliable estimate of the annual ETR cannot be made, the actual ETR for the year-to-date period may be the best estimate of the annual ETR. For the three and nine months ended September 28, 2013 and September 29, 2012 we used the actual year-to-date ETR in computing our tax benefit as a reliable estimate of the annual ETR cannot be made as relatively small changes in our projected income or loss produce a significant variance in our ETR. The actual year-to-date ETR for the three months ended September 28, 2013 and September 29, 2012, was 9.4% and 6.4%, respectively, and for the nine months ended September 28, 2013 and September 29, 2012 was 7.9% and 5.1%, respectively. The tax benefit in 2013 and 2012 differs from the U.S. federal statutory rate primarily due to the inability to benefit our domestic losses, foreign income taxed at lower rates, changes in our deferred tax asset valuation allowance, state taxes and changes and interest related to unrecognized tax benefits.

During the third quarter of fiscal 2013 we increased our liability for unrecognized tax benefits by approximately $3.0 million in conjunction with the Ismeca purchase price allocation.