Income Taxes

The Company regularly reviews its tax positions in each significant taxing jurisdiction in the process of evaluating its unrecognized tax benefits. The Company makes adjustments to its unrecognized tax benefits when: (i) facts and circumstances regarding a tax position change, causing a change in management’s judgment regarding that tax position; (ii) a tax position is effectively settled with a tax authority at a differing amount; and/or (iii) the statute of limitations expires regarding a tax position.

The total provision for (benefits from) income taxes included in the consolidated financial statements consisted of the following:



	Three Months Ended					Six Months Ended
	July 2, 2017		July 3, 2016			July 2, 2017		July 3, 2016
	(In thousands)
Continuing operations	$	8,066	$	3,117		$	11,987	$	10,864
Discontinued operations and dispositions	35,925		(1,182		)	37,143		1,283
Total	$	43,991	$	1,935		$	49,130	$	12,147

At July 2, 2017, the Company had gross tax effected unrecognized tax benefits of $28.9 million, of which $27.2 million, if recognized, would affect the continuing operations effective tax rate. The remaining amount, if recognized, would affect discontinued operations.

The Company believes that it is reasonably possible that approximately $3.8 million of its uncertain tax positions at July 2, 2017, including accrued interest and penalties, and net of tax benefits, may be resolved over the next twelve months as a result of lapses in applicable statutes of limitations and potential settlements. Various tax years after 2010 remain open to examination by certain jurisdictions in which the Company has significant business operations, such as Finland, Germany, Italy, Netherlands, Singapore, the United Kingdom and the United States. The tax years under examination vary by jurisdiction.

During the first six months of fiscal years 2017 and 2016, the Company recorded net discrete income tax benefits of $4.9 million and $5.4 million, respectively. The discrete tax benefits in the first six months of fiscal year 2017 and 2016 included the recognition of excess tax benefits on stock compensation of $3.4 million and $3.8 million, respectively.

As a result of the sale of the Medical Imaging business, the Company sold assets and liabilities of certain foreign operations and therefore the Company plans to liquidate the related foreign entity and repatriate approximately $55.0 million of previously unremitted earnings. As a result of the planned repatriation, the Company has provided for the estimated taxes on the repatriation of those earnings and recorded an increase to the Company’s tax provision of $3.5 million in discontinued operations and dispositions for the three and six months ended July 2, 2017. The Company expects to utilize tax attributes to minimize the cash taxes paid on the repatriation.

Taxes have not been provided for unremitted earnings that the Company continues to consider indefinitely reinvested, the determination of which is based on its future operational and capital requirements. The Company continues to maintain its indefinite reinvestment assertion with regards to the remaining unremitted earnings of its foreign subsidiaries, and therefore does not accrue U.S. tax for the repatriation of its remaining unremitted foreign earnings. As of July 2, 2017, the amount of foreign earnings that the Company has the intent and ability to keep invested outside the United States indefinitely and for which no U.S. tax cost has been provided was approximately $1.2 billion. It is not practical to calculate the unrecognized deferred tax liability on those earnings.