Income Taxes (Restated)

6 Months Ended

Jul. 01, 2011

Income Taxes (Restated) [Abstract]

Income Taxes (Restated)

9. Income Taxes (Restated)

We recorded a tax benefit of $3.9 million in the second quarter and $9.7 million for the first six months of 2011. Tax expense reflects an effective tax rate below the federal statutory rate of 35% due to limitations on our ability to record a full tax benefit on losses from domestic operations, and the effect of establishing a valuation allowance against domestic deferred tax assets. In addition, our effective tax rate was favorably impacted by a $2.8 million benefit in the second quarter and $6.2 million for the first six months of 2011 from the reversal of tax accruals no longer required due to the settlement of audits or the expiration of a statute of limitations.