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Income Taxes
6 Months Ended
Jun. 28, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
We recorded income tax expense of approximately $3.1 million (effective tax rate of 32.5%) in the three months ended June 28, 2014 compared to approximately $2.1 million (effective tax rate of 27.6%) in the three months ended June 29, 2013.
The effective tax rate for for the three months ended June 28, 2014 did not include any benefit from federal research and development (“R&D”) tax credits as it expired on December 31, 2013. The three months ended June 29, 2013 included federal research and development tax credits benefit of approximately $0.5 million.
We recorded income tax expense of approximately $5.3 million (effective tax rate of 32.5%) in the six months ended June 28, 2014 compared to approximately $0.9 million (effective tax rate of 8.6%) in the six months ended June 29, 2013.
The effective tax rate for for the six months ended June 28, 2014 did not include any benefit from federal R&D tax credits as it expired on December 31, 2013. The six months ended June 29, 2013 included federal research and development tax credits benefit of approximately $3.0 million. This amount included approximately $2.0 million of 2012 federal research and development tax credits benefit recognized in the six months ended June 29, 2013 as a result of the American Taxpayer Relief Act of 2012 (the “Act”), passed in January 2013. The Act included an extension of the federal research and development tax credit for amounts paid or incurred after December 31, 2011 and before January 1, 2014.
Our unrecognized tax benefits were approximately $2.7 million and $2.6 million at June 28, 2014 and December 31, 2013, respectively. Most of these amounts, if recognized, would affect the annual income tax rate. It is reasonably possible that the unrecognized tax benefits could be reduced by approximately $0.2 million in the next twelve months.