Note 11 — Income Taxes

The provision for income taxes is determined using an estimated annual effective tax rate. The effective tax rate may be subject to fluctuations during the year as new information is obtained, which may affect the assumptions used to estimate the annual effective tax rate, including factors such as the mix of pre-tax earnings in the various tax jurisdictions applicable to the Company, valuation allowances against deferred tax assets, the recognition or de-recognition of tax benefits related to uncertain tax positions, if any, and changes in or the interpretation of tax laws in jurisdictions where the Company conducts business.

The income tax provision for the quarter ended October 3, 2014 was $0.5 million, compared to a small net income tax benefit of $0.03 million reported for the quarter ended September 27, 2013. The income tax benefit recorded in the prior year quarter is due to the release of a valuation allowance at STAAR Japan. The income tax provision for the nine months ended October 3, 2014 and September 27, 2013 was $1.1 million and $0.9 million, respectively.