Income Taxes	6 Months Ended
Jun. 30, 2012
Income Taxes	Note 9. Income Taxes The Company records the interest charge and the penalty charge, if any, with respect to uncertain tax positions as a component of tax expense. During the six months ended June 30, 2012 and July 2, 2011, the Company recognized approximately $65,000 and $39,000, respectively, in interest related to uncertain tax positions. The Company had approximately $293,000 and $228,000 for the payment of interest and penalties accrued at June 30, 2012 and December 31, 2011, respectively. The Company’s total amount of unrecognized tax benefits was approximately $2,271,000 and $2,194,000 at June 30, 2012 and December 31, 2011, respectively. These amounts, if recognized, would affect the annual income tax rate. The Company’s federal income tax return for 2009, California franchise (income) tax returns for 2008 and 2009 and Texas franchise (margin) tax returns for 2010 and 2011 have been selected for examination. Management does not expect the results of these examinations to have a material impact on the Company’s financial statements. During the three months ended June 30, 2012, the examination of the Company’s 2009 Texas franchise (margin) tax return was completed with no significant adjustments required. Federal income tax returns after 2006, California franchise (income) tax returns after 2006 and other state income tax returns after 2006 are subject to examination. The Company had an effective tax rate of 4.7% in the second quarter 2012, compared to an effective tax benefit of 27.9% in the second quarter 2011. The Company had an effective tax rate of 16.0% for the six months ended June 30, 2012, compared to an effective tax benefit of 60.0% for the six months ended July 2, 2011. The effective tax rate in the second quarter and the first six months of 2012 benefitted from the LaBarge, Inc. acquisition which allows the Company to file a state consolidated tax return (“combined report”) in certain states. This lower tax rate reduced the Company’s tax provision by approximately $1,550,000. The Company’s effective tax rate for the second quarter and the first six months ended June 30, 2012 reflected no current year federal research and development tax benefits and the effective tax rate second quarter and the first six months of 2011 included federal research and development tax benefits. The income tax benefit in 2011 was due to a loss before taxes, primarily related to costs associated with the LaBarge acquisition.

Income Taxes

6 Months Ended

Jun. 30, 2012

Note 9. Income Taxes

The Company records the interest charge and the penalty charge, if any, with respect to uncertain tax positions as a component of tax expense. During the six months ended June 30, 2012 and July 2, 2011, the Company recognized approximately $65,000 and $39,000, respectively, in interest related to uncertain tax positions. The Company had approximately $293,000 and $228,000 for the payment of interest and penalties accrued at June 30, 2012 and December 31, 2011, respectively.

The Company’s total amount of unrecognized tax benefits was approximately $2,271,000 and $2,194,000 at June 30, 2012 and December 31, 2011, respectively. These amounts, if recognized, would affect the annual income tax rate.

The Company’s federal income tax return for 2009, California franchise (income) tax returns for 2008 and 2009 and Texas franchise (margin) tax returns for 2010 and 2011 have been selected for examination. Management does not expect the results of these examinations to have a material impact on the Company’s financial statements. During the three months ended June 30, 2012, the examination of the Company’s 2009 Texas franchise (margin) tax return was completed with no significant adjustments required. Federal income tax returns after 2006, California franchise (income) tax returns after 2006 and other state income tax returns after 2006 are subject to examination.

The Company had an effective tax rate of 4.7% in the second quarter 2012, compared to an effective tax benefit of 27.9% in the second quarter 2011. The Company had an effective tax rate of 16.0% for the six months ended June 30, 2012, compared to an effective tax benefit of 60.0% for the six months ended July 2, 2011. The effective tax rate in the second quarter and the first six months of 2012 benefitted from the LaBarge, Inc. acquisition which allows the Company to file a state consolidated tax return (“combined report”) in certain states. This lower tax rate reduced the Company’s tax provision by approximately $1,550,000. The Company’s effective tax rate for the second quarter and the first six months ended June 30, 2012 reflected no current year federal research and development tax benefits and the effective tax rate second quarter and the first six months of 2011 included federal research and development tax benefits. The income tax benefit in 2011 was due to a loss before taxes, primarily related to costs associated with the LaBarge acquisition.