Income Taxes

6 Months Ended

Jun. 29, 2012

Income Taxes

9. Income Taxes

We recorded tax expense of $6.8 million in the second quarter and $10.5 million in the first six months of 2012. Our tax expense results in an effective tax rate above the federal statutory rate of 35% because we are unable to recognize tax benefits on domestic losses due to the valuation allowance maintained against domestic deferred tax assets, combined with tax expense on income from foreign operations. We expect to continue to maintain a valuation allowance against domestic and certain non-U.S. deferred tax assets until a sufficient level of profitability is attained.