Income Taxes

The Company's provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. The components of the effective tax rate are as follows (in thousands, except percentage):



	Quarters Ended						Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Income (loss) before income taxes	$	4,379		$	3,085		$	(27,973	)	$	(31,976	)
Income tax expense	1,884			2,555			4,015			4,991
Effective tax rate	43.0		%	82.8		%	(14.4		)%	(15.6		)%

The effective tax rates for the quarters ended September 28, 2013 and September 29, 2012 are higher than the statutory rate, primarily as a result of income tax expense on foreign income partially offset by operating losses in the U.S. with no tax benefit recognized due to the valuation allowance on U.S. deferred tax assets.

The effective tax rates for the nine months ended September 28, 2013 and September 29, 2012 are lower than the statutory rate, primarily as a result of operating losses in the U.S. with no tax benefit recognized due to the valuation allowance on U.S. deferred tax assets, partially offset by income tax expense on foreign income.