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Income Taxes
6 Months Ended
Mar. 31, 2012
Income Taxes [Abstract]  
Income Taxes

NOTE 9 - INCOME TAXES

Income tax expense for the three and six months ended March 31, 2012 was $2.4 million and $4.2 million, respectively. The effective tax rates for both the three and six months ended March 31, 2012 were 11 and 10 percent, respectively. As demonstrated in recent quarters, the Company's tax rate can vary during the year based on the mix of forecasted earnings by tax jurisdiction. The Company currently benefits from reduced taxes in the APAC segment due to tax holidays in Penang, Malaysia and Xiamen, China.

Income tax expense for the three and six months ended April 2, 2011 was $0.7 million and $1.5 million, respectively. The effective tax rates for both the three and six months ended April 2, 2011 were 3 percent.

As of March 31, 2012, there was no material change in the amounts recorded for uncertain tax positions as compared to the fiscal 2011 year end. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. The amount of interest and penalties recorded for both the three and six months ended March 31, 2012 and April 2, 2011 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 currently under examination by taxing authorities in the U.S. for fiscal years 2009 and 2010 and is not undergoing any tax examinations in any of its major foreign jurisdictions. The U.S. examination may be resolved within the next twelve months, but at this time it is not possible to estimate the amount of the effects of any changes to the previously recorded uncertain tax positions.

The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized. For the quarter ended March 31, 2012, there was no material change in the valuation allowance as compared to the fiscal year ended October 1, 2011. Despite losses in fiscal years 2009-2011 in the U.S. tax jurisdiction, the Company's U.S. operations generated income for the three and six months ended March 31, 2012. Based on the weight of all the evidence, both positive and negative, it is more likely than not that the Company will be able to utilize its U.S. net deferred tax assets and no valuation allowance is warranted. However, if the Company's U.S. operations cannot sustain forecasted profitability, there may be a need to provide a valuation allowance on the Company's net U.S. deferred tax assets.