Income Taxes (Tables)

12 Months Ended

Dec. 28, 2012

Components of (Loss) Earnings before Income Taxes

Components of (loss) earnings before income taxes are as follows:

	2012			2011			2010
Domestic source	$	(209.2	)	$	(264.3	)	$	134.9
Foreign source		60.6			69.3			56.6
(Loss) earnings before income tax	$	(148.6	)	$	(195.0	)	$	191.5

Provision for Income Tax (Expense) Benefit

The provision for income tax (expense) benefit consists of the following:

	2012			2011			2010
Current
Federal	$	(2.9	)	$	12.9		$	(3.4	)
State		(0.7	)		(0.1	)		(2.9	)
Foreign		(13.8	)		(20.9	)		(13.1	)
Subtotal		(17.4	)		(8.1	)		(19.4	)
Deferred
Federal and state		(4.8	)		19.5			(10.2	)
Foreign		(0.9	)		(4.8	)		(6.3	)
Subtotal		(5.7	)		14.7			(16.5	)
Total income tax (expense) benefit	$	(23.1	)	$	6.6		$	(35.9	)

Deferred Tax Assets (Liabilities)

Deferred tax (liabilities) assets for 2012 and 2011 consist of the following:

	12/28/12			12/30/11
Deferred tax assets
Net operating loss and tax credit carryforwards	$	229.6		$	179.5
Amortizable intangibles		41.8			34.8
Inventory reserves		29.8			30.6
Deferred employee benefit expenses		17.2			22.8
Accrued liabilities		15.3			14.7
Deferred compensation plan		6.1			13.7
Restructuring accruals		5.7			5.7
Deferred revenue and advance payments		5.2			4.8
Fixed assets and depreciation		4.6			—
Other		13.1			11.3
Deferred tax assets	$	368.4		$	317.9
Deferred tax liabilities
Unrealized gain on marketable securities	$	(184.8	)	$	(196.0	)
Unremitted earnings of non-U.S. subsidiaries		(48.0	)		—
Fixed assets and depreciation		—			(0.5	)
Other		(6.7	)		(5.1	)
Deferred tax liabilities		(239.5	)		(201.6	)
Valuation allowance		(134.3	)		(113.8	)
Net deferred tax (liabilities) assets	$	(5.4	)	$	2.5

Reconciliation of Reported Effective Income Tax Rate to Domestic Federal Income Tax Rate

A reconciliation of the reported effective income tax rates to the domestic federal income tax rate is as follows:

In percentages	2012			2011			2010
Statutory Federal income tax rate		35.0	%		35.0	%		35.0	%
Valuation allowance on net domestic deferred tax assets		(46.1	)		(20.4	)		(11.6	)
State income tax, net of federal benefits1		(0.8	)		3.0			(4.9	)
Foreign earnings taxed at different rates		2.6			(2.2	)		1.8
Research and development credits		0.1			4.2			(1.4	)
Nondeductible equity-based compensation expense		(0.4	)		(0.4	)		0.3
Interest related to prior year tax matters		(0.2	)		(0.2	)		0.3
Tax exempt interest		—			—			(0.1	)
Goodwill impairment		—			(14.8	)		—
Other, net		(5.8	)		(0.8	)		(0.6	)
Effective income tax rate		(15.6	)%		3.4	%		18.8	%

¹  In 2010, state income tax, net of federal benefits, reflects a benefit of $9.4 million, including interest, related to the reversal of reserves no longer required due to a lapse in the statute of limitations.

Tax Net Operating Loss (Tax Effected) and Credit Carryforwards

We had the following tax net operating loss (tax effected) and credit carryforwards as of December 28, 2012:

			Years of expiration
	12/28/12		Beginning	Ending
U.S. net operating loss and credit carryforwards	$	179.1	2016		2032
U.S. capital loss carryforwards		0.4	2016		2016
State net operating loss and credit carryforwards		20.1	2013		2032
State credit carryforwards		13.8	no expiration
Foreign net operating loss and credit carryforwards		13.2	2013		2031
Foreign net operating loss carryforwards		3.0	no expiration
Total	$	229.6

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	12/28/12			12/30/11
Balance – beginning of year	$	11.4		$	17.2
Additions based on tax positions related to the current year		1.9			2.8
Additions for tax positions of prior years		0.6			—
Reductions for tax positions of prior years as a result of a lapse in the statute of limitations		(0.7	)		(4.1	)
Reductions for tax positions of prior years relating to settlements with taxing authorities		—			(4.5	)
Balance – end of year	$	13.2		$	11.4