Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

Note 4 – Income Taxes

Income tax expense was $4.3 million on pretax income of $37.4 million for the six months ended June 30, 2012, as compared to income tax expense of $2.3 million on pretax income of $37.6 million for the six months ended July 2, 2011. The year to date income tax expense was reduced by an adjustment of $1.2 million related to an audit settlement and the lapse of a statute of limitation. During the second quarter of 2011, we completed a reorganization of our legal entity structure and refinanced intercompany debt. As a result of these activities, our annual effective tax rate is expected to be lower than the statutory rate for 2012.