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INCOME TAXES
6 Months Ended
Jun. 29, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
The effective tax rate continues to be lower than the United States statutory rate of 35 percent primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the U.S. statutory rate as well as recognition of foreign tax credits.  The Company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit.

The Company's net unrecognized tax benefits decreased $2.6 million for federal and state income tax liabilities of prior years based on tax audits and the expiration of statue of limitations.

If recognized, the effective tax rate would be affected by the net unrecognized tax benefits of $5.1 million as of June 29, 2013.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense, the impact of which is immaterial. The Company has accrued interest and penalties as of June 29, 2013, of $0.2 million.

It is reasonably possible that the amounts of unrecognized tax benefits could change in the next twelve months as a result of an audit or due to the expiration of a statute of limitation. Based on the current audits in process and pending statute expirations, the payment of taxes as a result could be up to $2.9 million.