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Income Tax
6 Months Ended
Dec. 27, 2014
Income Tax  
Income Tax

Note 12. Income Tax

 

The Company recorded an income tax expense of $8.8 million and $14.9 million for the three and six months ended December 27, 2014, respectively. The Company recorded an income tax expense of $3.0 million and $3.5 million for the three and six months ended December 28, 2013, respectively. The Company recorded an adjustment related to prior periods which reduced income tax expense by $1.7 million for the three months ended December 28, 2013, of which $0.8 million and $0.9 million related to the fourth quarter of fiscal 2013 and the first quarter of fiscal 2014, respectively.

 

These income tax expenses recorded for the three and six months ended December 27, 2014, and December 28, 2013, primarily relate to income tax in certain foreign and state jurisdictions based on the Company’s forecasted pre-tax income for the year in those locations. A tax benefit of $0.9 million and $5.1 million was recorded in the Company’s income tax provision for the three and six months ended December 28, 2013, respectively, related to the income tax intraperiod tax allocation rules in relation to other comprehensive income.

 

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 December 27, 2014 and June 28, 2014, the Company’s unrecognized tax benefits totaled $58.4 million and $60.3 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 December 27, 2014. The unrecognized tax benefits that may be recognized during the next twelve months are approximately $23.1 million.