Income Taxes

9 Months Ended

Jan. 01, 2012

Income Taxes [Abstract]

Income Taxes

NOTE 16. INCOME TAXES

Income tax expense (benefit) for the periods indicated below was as follows (in thousands):

	Three Months Ended						Nine Months Ended
	January 1, 2012			December 26, 2010			January 1, 2012		December 26, 2010
Income tax expense (benefit)	$	(169	)	$	(63	)	$	3	$	89

The income tax benefit for the three months ended January 1, 2012 and December 26, 2010, were primarily related to the partial release of the liability for unrecognized tax benefits due to the expiration of the statute of limitations during the third quarter of fiscal years 2012 and 2011. The income tax expense for the nine months ended January 1, 2012 and December 26, 2010, were due to expenses recorded for foreign taxable income offset by the partial release of the liability for unrecognized tax benefits.

The total unrecognized gross tax benefits as of January 1, 2012 and March 27, 2011 were $17.3 million and $16.7 million, respectively, of which $3.5 million and $3.7 million, respectively, are presented within income tax payable in the other non-current obligations line item on the condensed consolidated balance sheet, while the remaining amounts of $13.8 million and $13.0 million reduce deferred tax assets and corresponding valuation allowance. The increases in unrecognized tax benefits for the periods were as follow (in thousands):

	Three Months Ended				Nine Months Ended
	January 1, 2012		December 26, 2010		January 1, 2012		December 26, 2010
Unrecognized tax benefits	$	215	$	168	$	586	$	406

The increases for all periods presented were primarily related to R&D tax credits. If recognized, $14.7 million of these unrecognized tax benefits (net of federal benefit) would be recorded as a reduction of future income tax provision before consideration of changes in valuation allowance for deferred tax assets.

Estimated interest and penalties related to the income taxes are classified as a component of the provision for income taxes in the condensed consolidated statement of operations. Accrued interest and penalties consisted of the following as of the dates indicated (in thousands):

	January 1, 2012		March 27, 2011
Accrued interest and penalties	$	252	$	283

Our only major tax jurisdictions are the United States federal and various U.S. states. The fiscal years 2002 through 2011 remain open and subject to examinations by the appropriate governmental agencies in the United States and in certain of our U.S. state jurisdictions.