v2.4.0.6
Income Tax
6 Months Ended
Mar. 30, 2012
Income Tax Disclosure [Abstract]  
Income Tax
Income Taxes
Our effective tax rate is based on a projection of our annual fiscal year results. Our effective tax rate was 33% and 28% for the fiscal quarters ended April 1, 2011 and March 30, 2012, respectively, and 28% and 28% for the fiscal year-to-date periods ended April 1, 2011 and March 30, 2012, respectively.
Our estimated fiscal year 2012 tax provision reflects additional benefits from our election to indefinitely reinvest a portion of our undistributed earnings in a foreign subsidiary. We also benefited from a change in the State of California apportionment sourcing rules, which became effective in the first quarter of fiscal 2012. These benefits were partially offset by the expiration of the federal research and development tax credits, effective from the first quarter of fiscal 2012, which resulted in an increase to our effective tax rate.
In the fiscal year-to-date period ended April 1, 2011, we completed the restructuring of our international operations, which resulted in the release of a deferred tax liability of $11.0 million related to the amortization of an intangible asset from a prior year acquisition, thereby lowering our effective tax rate for that period.
As of March 30, 2012, the total amount of gross unrecognized tax benefits was $14.4 million, of which $8.1 million, if recognized, would reduce our effective tax rate. Our liability for unrecognized tax benefits is classified within non-current liabilities in our condensed consolidated balance sheets.
Withholding Tax.    We recognize licensing revenue gross of withholding taxes, which our licensees remit directly to their local tax authorities, and for which we receive a related foreign tax credit in our income tax provision. Withholding tax remittances were $7.6 million and $10.2 million in the fiscal quarters ended April 1, 2011 and March 30, 2012, respectively. Withholding tax remittances were $15.9 million and $21.4 million in the fiscal year-to-date periods ended April 1, 2011 and March 30, 2012, respectively.