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Income Taxes Income Taxes
3 Months Ended
Mar. 28, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure
INCOME TAXES
The Company’s effective tax rate for the three months ended March 28, 2014 and March 29, 2013 was 23.9% and 25.0%, respectively.
The Company's effective tax rate for 2014 and 2013 differs from the U.S. federal statutory rate of 35% due principally to the Company’s earnings outside the United States that are indefinitely reinvested and taxed at rates lower than the U.S. federal statutory rate. The effective tax rate for the three months ended March 28, 2014 includes tax effects of certain discrete items specific to the quarter, none of which are significant individually or in the aggregate. During the three months ended March 29, 2013, the Company's gain on the sale of the Apex joint venture increased the reported tax rate by 3.5%, which was partially offset by the retroactive reinstatement of certain tax benefits and credits from the enactment of the American Tax Relief Act of 2012.
Tax authorities in Denmark and Germany have raised significant issues related to the deductibility and taxability of interest accrued by certain of the Company's subsidiaries. On December 10, 2013, the Company received assessments from the Danish tax authority (“SKAT”) totaling approximately DKK 1.1 billion (approximately $200 million based on exchange rates as of March 28, 2014) imposing withholding tax and interest thereon relating to interest accrued in Denmark on borrowings from certain of the Company's subsidiaries for the years 2004-2009. If the SKAT claims are successful, it is likely that the Company would be assessed additional amounts through March 2014 totaling approximately DKK 800 million (approximately $150 million based on exchange rates as of March 28, 2014) as well as future interest on the disputed withholding tax for subsequent periods prior to such a determination. Discussions with the German tax authorities are ongoing and final assessments have not been issued.
Management believes the positions the Company has taken in both Denmark and Germany are in accordance with the relevant tax laws and intends to vigorously defend its positions, including contesting the SKAT assessment; however, the ultimate resolution of these matters is uncertain, could take many years, and individually or in the aggregate could result in a material adverse impact to the Company's financial statements, including its effective tax rate.