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Income Taxes
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6 Months Ended |
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Jun. 29, 2013
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| Income Tax Disclosure [Abstract] | |
| Income Taxes | 12. Income Taxes As of June 29, 2013, the balance of the gross unrecognized tax benefit was $7.2 million, of which $6.2 million (net of federal benefit on state taxes), if recognized, would affect the effective tax rate. As of December 29, 2012, the balance of the gross unrecognized tax benefit was $6.7 million, of which $5.7 million (net of federal benefit on state taxes), if recognized, would affect the effective tax rate. The remaining balance relates to timing differences. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next twelve months due to the expiration of statutes of limitation and audit settlements. However, due to the uncertainty surrounding the timing of these events, an estimate of the change within the next twelve months cannot currently be made. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. For the three and six months ended June 29, 2013, the Company expensed $0.1 million and $0.1 million, respectively, for interest. For the three and six months ended June 30, 2012, the Company expensed $0.1 million and $0.1 million, respectively, for interest. The Company conducts business in multiple jurisdictions and, as a result, one or more of the Company’s subsidiaries files income tax returns in U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for each year through 2008. All material state, local and foreign income tax matters have been concluded for each year through 2005.
The provision for income taxes was $8.3 million and $12.7 million, or an effective tax rate of 36.2% and 29.0%, for the three and six months ended June 29, 2013, respectively. The provision for income taxes was $4.4 million and $10.4 million, or an effective tax rate of 20.0% and 23.7%, for the three and six months ended June 30, 2012, respectively. Included in the provision for income taxes for the three and six months ended June 29, 2013 was an income tax provision of $2.0 million relating to the establishment of a valuation allowance against Cercacor’s deferred tax assets. The effective tax rate differs from the statutory U.S. federal income tax rate of 35% primarily due to state taxes, permanent differences between pre-tax income for financial reporting purposes and taxable income, research related tax credits, valuation allowances, the recognition of tax benefits related to uncertain tax positions and anticipated income in jurisdictions in which the Company does business with different effective tax rates. |