Income Tax

9 Months Ended

Mar. 31, 2012

Income Tax

Income Tax

Note 12. Income Tax

The Company recorded an income tax expense of $3.1 million and $9.5 million for the three and nine months endedMarch 31, 2012, respectively.  The Company recorded an income tax benefit of $32.1 million and $29.0 million for the three and nine months ended April 2, 2011, respectively.

The income tax expense recorded for the three and nine months ended March 31, 2012, primarily relates to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the year in those locations.

The income tax benefit recorded for the three months and nine months ended April 2, 2011, primarily relates to a $34.9 million release of the deferred tax valuation allowance for a non-US jurisdiction. The tax benefit was offset by income tax expense in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the year in those locations. In addition, the income tax benefit for the nine months ended April 2, 2011, includes the recognition of $5.2 million of uncertain tax benefits relating to the effective settlement of tax matters in non-US jurisdictions.

The income tax expense recorded differs from the expected tax expense or benefit that would be calculated by applying the federal statutory rate to the Company’s income or loss before income taxes primarily due to the increases in valuation allowance for deferred tax assets attributable to the Company’s domestic and foreign losses from continuing operations.

As of March 31, 2012 and July 2, 2011, the Company’s unrecognized tax benefits totaled $60.7 million and $64.0 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $23.3 million accrued for the payment of interest and penalties at March 31, 2012.