Income Taxes

9 Months Ended

Jan. 01, 2012

Income Taxes [Abstract]

Income Taxes

Note 7. Income Taxes

The Company’s provision (benefit) for income taxes was $4.2 million and $9.8 million for the three and nine months ended January 1, 2012, respectively, and $(9.1) million and $2.2 million for the three and nine months ended December 26, 2010, respectively.

The effective tax rate was 10% and 2% for the nine months ended January 1, 2012 and December 26, 2010, respectively. The effective tax rate is based upon the estimated income for the year, the composition of the estimated income in different tax jurisdictions, and the tax effect, if any, in the applicable quarterly periods of newly enacted tax legislation, resolution of tax audits, changes in uncertain tax positions, and other discrete tax related items. The allocation of taxable income to domestic and foreign tax jurisdictions impacts the effective tax rate, as the Company’s income tax rate in foreign jurisdictions is generally lower than its income tax rate in the United States.

The effective tax rate for the nine months ended January 1, 2012 was favorably impacted by certain discrete tax related items, principally the resolution of state income tax examinations. The effective tax rate for the nine months ended December 26, 2010 was favorably impacted by $14.6 million of income tax benefits related to the expiration of certain statutes of limitation, the retroactive reinstatement of the federal research tax credit and certain other items that were recorded in the three months ended December 26, 2010.

The Company’s federal consolidated income tax returns for fiscal years 2008 and 2009 are currently under examination by the Internal Revenue Service. Management does not believe that the results of these examinations will have a material impact on the Company’s financial condition or results of operations.