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Income Tax
9 Months Ended
Mar. 29, 2014
Income Tax  
Income Tax

Note 12. Income Tax

 

The Company recorded an income tax benefit of $17.2 million and $13.7 million for the three and nine months ended March 29, 2014, respectively. The Company recorded an income tax expense of $1.6 million and $9.1 million for the three and nine months ended March 30, 2013, respectively.

 

The income tax benefit recorded for the three and nine months ended March 29, 2014, 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 offset by the recognition of $21.7 million of uncertain tax benefits related to deferred tax assets due to the expiration of the statute of limitations in a non-US jurisdiction.  A tax benefit of $5.1 million was recorded for the nine months ended March 29, 2014,  related to the income tax intraperiod tax allocation rules in relation to other comprehensive income. In accordance with authoritative guidance, the year to date benefit may reverse during the year.

 

The income tax expense recorded for the three and nine months ended March 30, 2013, 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 and 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, due to the income tax benefit recorded in continuing operations under the income tax intraperiod tax allocation rules, and the recognition of the unrecognized tax benefits.

 

As of March 29, 2014 and June 29, 2013, the Company’s unrecognized tax benefits totaled $58.4 million and $80.7 million, respectively, and are included in deferred taxes and other non-current tax liabilities, net. The Company had $23.6 million accrued for the payment of interest and penalties at March 29, 2014. The unrecognized tax benefits that may be recognized during the next twelve months are approximately $21.4 million.