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Income Taxes
6 Months Ended
Jul. 02, 2011
Income Taxes [Abstract]  
Income Tax Disclosure [Text Block]
Income Taxes


The Company accounts for income taxes under the provisions of ASC 740, Accounting for Income Taxes. The Company's effective tax rate for the three month period ended July 2, 2011 of approximately 34% is based on the Company's estimated annual effective tax rate of approximately 34% adjusted for discrete items of $0.1 million in the period. The Company's income tax provision for the three month periods ended July 2, 2011 and July 3, 2010 was $5.7 million and $1.2 million, respectively. The Company's income tax provision for the six month periods ended July 2, 2011 and July 3, 2010 was $11.4 million and $1.3 million, respectively.


The effective income tax rate for the six month period ended July 2, 2011 was substantially similar to the statutory United States federal income tax rate of 35% primarily due to state income taxes and subpart F income, which were offset by the domestic manufacturing deduction and federal income tax rates in excess of foreign tax rates. The effective tax rate for the six month period ended July 3, 2010 was different from the statutory United States federal income tax rate of 35% primarily due to foreign non-deductible share-based compensation expense, state income taxes, foreign tax withholding, and subpart F income which were offset by change in valuation allowance, recording a benefit for the alternative minimum tax and net operating loss carrybacks, and federal income tax rates in excess of foreign tax rate.


As of July 2, 2011, the Company continued to have a valuation allowance against certain non-US net deferred tax assets as a result of uncertainties regarding the realization of the asset balance due to cumulative losses and uncertainty of future taxable income in those jurisdictions. In the event that the Company determines that the deferred tax assets are realizable, an adjustment to the valuation allowance may adjust the effective tax rate in the period such determination is made.


The Company is subject to taxation in the United States and various states including California, and foreign jurisdictions including South Korea, Japan and the United Kingdom. Due to tax attribute carry-forwards, the Company is subject to examination by the Internal Revenue Service ("IRS") for all tax years, beginning from the 2004 tax year. The Company is also subject to examination in various states and foreign jurisdictions for all tax years beginning from the 2004 tax year.  The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of accrued penalties and interest is not material for the six months ended July 2, 2011. The Company believes it may recognize up to $0.5 million of its existing unrecognized tax benefits within the next twelve months as a result of the lapse of the applicable statutes of limitations.