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Income Taxes
9 Months Ended
Oct. 01, 2011
Income Tax Disclosure [Abstract] 
Income Tax
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 October 1, 2011 of approximately 38% is based on the Company's estimated annual effective tax rate of approximately 34% adjusted for discrete items of $0.5 million in the period. The Company's income tax provision for the three month periods ended October 1, 2011 and October 2, 2010 was $4.7 million and $1.1 million, respectively. The Company's effective tax rate for the nine month period ended October 1, 2011 of approximately 36% is based on the Company's estimated annual effective tax rate of approximately 34% adjusted for discrete items of $0.5 million in the nine month period. The Company's income tax provision for the nine month periods ended October 1, 2011 and October 2, 2010 was $16.1 million and $2.4 million, respectively.

The effective income tax rate for the nine month period ended October 1, 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, and prior year federal and certain foreign tax return true-ups, which were offset by the domestic manufacturing deduction, tax credit for research and development, and federal income tax rates in excess of foreign tax rates. The effective tax rate for the nine month period ended October 2, 2010 was different from the statutory United States federal income tax rate of 35% primarily due to non-deductible share-based compensation expense, state income taxes, foreign tax withholding, and subpart F income which were offset by change in valuation allowance, domestic manufacturing deduction, and federal income tax rates in excess of foreign tax rate.

As of October 1, 2011, the Company continued to have a valuation allowance against certain 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 various tax 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 net operating losses and tax credit carry-forwards, the Company is subject to examination by the Internal Revenue Service for all tax years, beginning from the 2003 tax year. The Company is also subject to examination in various states and foreign jurisdictions for all tax years beginning from the 2002 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 three and nine month periods ended October 1, 2011. The Company believes it may recognize up to $0.4 million of its existing unrecognized tax benefits within the next twelve months as a result of the lapse of the applicable statutes of limitations.