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Income Taxes
6 Months Ended
Apr. 04, 2015
Income Tax Expense (Benefit), Continuing Operations [Abstract]  
Income Taxes
Income tax expense for the three and six months ended April 4, 2015 was $3.2 million and $6.2 million, respectively. The effective tax rates for the three and six months ended April 4, 2015 were 12.0 percent and 11.7 percent, respectively, as compared to (7.2) percent and 2.5 percent for the three and six months ended March 29, 2014, respectively.
The change in the effective tax rate for the three and six months ended April 4, 2015 as compared to the three and six months ended March 29, 2014, was primarily the result of a net $3.7 million discrete tax benefit that occurred in the second quarter of fiscal 2014, largely related to the completion of U.S. federal and state audits. Without these discrete benefits, the effective tax rates would have been 14.4 percent and 12.8 percent for the three and six months ended March 29, 2014, respectively.
The reduction in the effective tax rates for the three and six months ended April 4, 2015 compared with the adjusted effective tax rates for the three and six months ended March 29, 2014 is largely attributed to increased earnings in low-tax jurisdictions and jurisdictions where the Company maintains valuation allowances due to historical tax losses. As demonstrated in recent quarters, the Company's effective tax rate fluctuates depending on the geographic distribution of its worldwide earnings.
There were no material additions to the amount of unrecognized tax benefits recorded for uncertain tax positions as of April 4, 2015 as compared to September 27, 2014. The Company recognizes accrued interest and penalties related to the remaining uncertain tax positions in income tax expense. The amount of interest and penalties recorded for both the three and six months ended April 4, 2015 was not material.
It is reasonably possible that a number of uncertain tax positions related to federal and state tax positions may be settled within the next 12 months. The Company is not currently under examination by taxing authorities in the U.S. or any foreign jurisdictions in which the Company has significant operations.
The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three and six months ended April 4, 2015, the Company continued to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the AMER and EMEA segments, as it is more likely than not that these assets will not be fully realized based primarily on historical performance. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until the need for a valuation allowance is eliminated. The need for a valuation allowance will be eliminated when the Company determines it is more likely than not that the deferred tax assets will be realized.