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Income Taxes
3 Months Ended
Jul. 04, 2014
Income Taxes [Abstract]  
Income Taxes
Income Taxes

The Company's effective tax rate from continuing operations (ETR) was 25.7% and 31.2% for the first quarter ended July 4, 2014 and June 28, 2013, respectively. The ETR for the first quarter ended July 4, 2014 reflected the global mix of income and the change in valuation allowance in a non-U.S. jurisdiction, which decreased the ETR by 7.5%. The primary driver of the ETR for the first quarter ended June 28, 2013 was the change in valuation allowance in non-U.S. jurisdictions and the global mix of income. For the tax impact of discontinued operations, see Note 4.

There were no material changes to uncertain tax positions in the first quarter of fiscal 2015 compared to the fiscal 2014 year-end.

The Internal Revenue Service (IRS) is examining the Company's federal income tax returns for fiscal years 2008 through 2010. The Company expects to reach a resolution no earlier than fiscal year 2016. The significant items subject to examination primarily relate to foreign exchange losses and other U.S. international tax issues. In addition, the Company may settle certain other tax examinations, have lapses in statutes of limitations, or voluntarily settle income tax positions in negotiated settlements for different amounts than the Company has accrued as uncertain tax positions. The Company may need to accrue and ultimately pay additional amounts for tax positions that previously met a more likely than not standard if such positions are not upheld. Conversely, the Company could settle positions with the tax authorities for amounts lower than those that have been accrued or extinguish a position through payment. The Company believes the outcomes which are reasonably possible within the next twelve months may result in a reduction in the liability for uncertain tax positions of up to $22 million, excluding interest, penalties, and tax carryforwards.

Significant management judgment is required in determining the Company's provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. A valuation allowance has been recorded against certain deferred tax assets due to uncertainties related to the ability to utilize these assets. The valuation allowance is based on historical earnings, estimates of taxable income by jurisdiction and the period over which the deferred tax assets will be recoverable. Valuation allowances are evaluated periodically and will be subject to change in each future reporting period as a result of changes in various factors. Based on recent earnings in certain jurisdictions there is a reasonable possibility that, within fiscal 2015, sufficient positive evidence may become available to reach a conclusion that a portion of the valuation allowance will no longer be needed. As such, the Company may release a significant portion of its valuation allowance against its deferred tax assets within the next nine months. This release would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period such release is recorded. Any such adjustment could materially impact the Company's financial position and results of operations.