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Income taxes
6 Months Ended
Dec. 28, 2013
Income Tax Disclosure [Abstract]  
Income taxes
Income taxes
The Company’s effective tax rate on its income before income taxes was 33.8% in the second quarter of fiscal 2014 as compared with 18.6% in the second quarter of fiscal 2013. During the second quarter of fiscal 2014, the Company's effective tax rate was negatively impacted primarily by increases to (i) valuation allowances, (ii) reserves, and (iii) an investment in a foreign subsidiary. The effective tax rate for the second quarter of fiscal 2014 was also impacted negatively, to a lesser extent, by the mix of income earned in the higher tax rate jurisdictions. During the second quarter of fiscal 2013, the Company's effective tax rate was favorably impacted primarily by the settlement of an audit by the U.S. Internal Revenue Service (“IRS”) for an acquired company and the recognition of a U.S. tax benefit on the closure of a foreign operation.
For the first six months of fiscal 2014 and 2013, the Company's effective tax rate was 31.9% and 14.4%, respectively. This increase in the effective tax rate was due primarily to increases to valuation allowances and reserves that occurred during fiscal year 2014. The effective tax rate for the first six months of fiscal 2014 was also impacted negatively, to a lesser extent, by the mix of income earned in the higher tax rate jurisdictions as compared to the first six months of 2013. The fiscal year 2013 effective tax rate was favorably impacted by (i) the settlement of two audits by the IRS for the Company and an acquired company, (ii) a non-taxable gain on a bargain purchase, partially offset by (iii) increases to valuation allowances and reserves. Due to the reduced level of income in the first six months of fiscal 2013, the net favorable impact of these items on the effective tax rate was significant.