XML 90 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.8

INCOME TAXES | 12 Months Ended
--- | ---
Mar. 29, 2014
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Domestic and foreign income before provision for income tax is as follows:
(In thousands) | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
Domestic | $ | (6,859 | ) |  | $ | 17,360 |  |  | $ | 40,666 |
Foreign | 43,260 |  |  | 32,537 |  |  | 48,832 |
Total | $ | 36,401 |  |  | $ | 49,897 |  |  | $ | 89,498 |
The income tax provision contains the following components:
(In thousands) | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
Current |  |  |  |  |  |  |  |
Federal | $ | (4,896 | ) |  | $ | 3,795 |  |  | $ | 8,505 |
State | 873 |  |  | 1,324 |  |  | 2,275 |
Foreign | 5,478 |  |  | 5,389 |  |  | 5,954 |
Total current | $ | 1,455 |  |  | $ | 10,508 |  |  | $ | 16,734 |
Deferred |  |  |  |  |  |  |  |
Federal | (1,785 | ) |  | 1,644 |  |  | 7,522 |
State | 207 |  |  | (229 | ) |  | (597 | )
Foreign | 1,376 |  |  | (826 | ) |  | (1,047 | )
Total deferred | $ | (202 | ) |  | $ | 589 |  |  | $ | 5,878 |
Total | $ | 1,253 |  |  | $ | 11,097 |  |  | $ | 22,612 |
Included in the federal income tax provisions for fiscal 2014, 2013 and 2012 are approximately $0.4 million, $1.6 million and $2.2 million, respectively, provided on foreign source income of approximately $1.3 million, $4.5 million and $6.2 million for fiscal years 2014, 2013 and 2012, respectively, for taxes which are payable in the United States. Our subsidiary in Puerto Rico has been granted a fifteen year tax grant which expires in 2027. Our qualification for the tax grant is dependent on the continuation of our manufacturing activities in Puerto Rico. We benefit from a reduced tax rate on our earnings in Puerto Rico under the tax grant. Tax affected, significant temporary differences comprising the net deferred tax liability are as follows:
(In thousands) | March 29, 2014 |  | March 30, 2013
Depreciation | $ | (23,658 | ) |  | $ | (25,186 | )
Amortization | (18,618 | ) |  | (14,776 | )
Inventory | 7,371 |  |  | 7,884 |
Hedging | 321 |  |  | (162 | )
Accruals, reserves and other | 10,368 |  |  | 7,208 |
Net operating loss carry-forward | 1,507 |  |  | 1,877 |
Stock based compensation | 8,757 |  |  | 7,834 |
Tax credit carry-forward, net | 2,660 |  |  | 2,243 |
Gross deferred taxes | $ | (11,292 | ) |  | $ | (13,078 | )
Less valuation allowance | (3,083 | ) |  | (1,009 | )
Net deferred tax liability | $ | (14,375 | ) |  | $ | (14,087 | )
The valuation allowance increased by $2.1 million during 2014, primarily due to current year operating losses generated in foreign jurisdictions that we have determined are not more-likely-than-not realizable. As of March 29, 2014, we maintain a valuation allowance against certain U.S. tax attributes subject to limitations as a result of ownership changes and a full valuation allowance against the net deferred tax assets of certain foreign subsidiaries. At March 29, 2014, we have U.S. federal net operating loss carry-forwards of approximately $3.5 million, U.S. state net operating loss carry-forwards of $14.7 million, federal tax credit carry-forwards of $3.3 million and state tax credit carry-forwards of $1.6 million that are available to reduce future taxable income. The federal net operating losses are subject to an annual limitation due to the ownership change limitations set forth under Internal Revenue Code Sections 382. Certain of the aforementioned amounts have not been recognized because they relate to excess stock based compensation. At March 29, 2014, none of the federal net operating loss carry-forwards, $6.8 million of the state net operating loss carry-forwards, $1.7 million of the federal tax credit carry-forwards and none of the state tax credit carry-forwards relate to excess stock based compensation tax deductions for which the benefit will be recorded to additional paid-in capital when recognized. The state net operating losses begin to expire in 2019. The federal and state tax credits begin to expire in 2023 and 2025, respectively. As of March 29, 2014, we have foreign net operating losses of approximately $0.4 million that are available to reduce future income. Substantially all of our foreign net operating loss carry-forwards have unlimited carryover periods. Income taxes have not been provided on the undistributed earnings of foreign subsidiaries of approximately $264 million, because such earnings are considered to be indefinitely reinvested in the business. The accumulated earnings in the foreign subsidiaries are primarily utilized to fund working capital requirements as our subsidiaries continue to expand their operations, to service existing debt obligations and to fund future foreign acquisitions. We do not believe it is practicable to estimate the amount of income taxes payable on the earnings that are indefinitely reinvested in foreign operations. The income tax provision from operations differs from tax provision computed at the 35% U.S. federal statutory income tax rate due to the following:
(In thousands) | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
Tax at federal statutory rate | $ | 12,739 |  |  | 35.0 | % |  | $ | 17,464 |  |  | 35.0 | % |  | $ | 31,324 |  |  | 35.0 | %
Domestic manufacturing deduction | — |  |  | — | % |  | (504 | ) |  | (1.0 | )% |  | (700 | ) |  | (0.8 | )%
Difference between U.S. and foreign tax | (10,846 | ) |  | (29.8 | )% |  | (5,584 | ) |  | (11.2 | )% |  | (8,539 | ) |  | (9.5 | )%
State income taxes net of federal benefit | (252 | ) |  | (0.7 | )% |  | 718 |  |  | 1.4 | % |  | 1,136 |  |  | 1.3 | %
Change in uncertain tax positions | (1,678 | ) |  | (4.6 | )% |  | (580 | ) |  | (1.2 | )% |  | 144 |  |  | 0.2 | %
Intercompany loan deduction | (2,185 | ) |  | (6.0 | )% |  | — |  |  | — | % |  | — |  |  | — | %
Non-deductible expenses | 1,035 |  |  | 2.8 | % |  | 1,178 |  |  | 2.4 | % |  | 917 |  |  | 1.0 | %
Research credits | (688 | ) |  | (1.9 | )% |  | (799 | ) |  | (1.6 | )% |  | (752 | ) |  | (0.9 | )%
Valuation allowance | 2,400 |  |  | 6.6 | % |  | — |  |  | — | % |  | — |  |  | — | %
Other, net | 728 |  |  | 2.0 | % |  | (796 | ) |  | (1.6 | )% |  | (918 | ) |  | (1.0 | )%
Income tax provision | $ | 1,253 |  |  | 3.4 | % |  | $ | 11,097 |  |  | 22.2 | % |  | $ | 22,612 |  |  | 25.3 | %
Unrecognized Tax Benefits Unrecognized tax benefits represent uncertain tax positions for which reserves have been established. As of March 29, 2014, we had $5.6 million of unrecognized tax benefits, all of which would impact the effective tax rate, if recognized. As of March 30, 2013, we had $6.9 million of unrecognized tax benefits, of which $6.7 million would impact the effective tax rate, if recognized. At March 31, 2012, we had $6.9 million of unrecognized tax benefits, of which $6.6 million would impact the effective tax rate, if recognized. During the fiscal year ended March 29, 2014 our unrecognized tax benefits were increased by $1.3 million due primarily to the release of certain previously established reserves in connection with the closure of tax statutes of limitations. The following table summarizes the activity related to our gross unrecognized tax benefits for the fiscal years ended March 29, 2014, March 30, 2013 and March 31, 2012:
(In thousands) | March 29, 2014 |  | March 30, 2013 |  | March 31, 2012
Beginning Balance | $ | 6,930 |  |  | $ | 6,885 |  |  | $ | 4,669 |
Additions based upon positions related to the current year | — |  |  | 1,192 |  |  | 1,124 |
Additions for tax positions of prior years | 990 |  |  | 18 |  |  | 1,216 |
Reductions of tax positions | — |  |  | — |  |  | (124 | )
Settlements with taxing authorities | — |  |  | (80 | ) |  | — |
Closure of statute of limitations | (2,316 | ) |  | (1,085 | ) |  | — |
Ending Balance | $ | 5,604 |  |  | $ | 6,930 |  |  | $ | 6,885 |
As of March 29, 2014 we anticipate that the liability for unrecognized tax benefits for uncertain tax positions could change by up to $1.7 million in the next twelve months, as a result of closure of various statutes of limitations. Our historic practice has been and continues to be to recognize interest and penalties related to Federal, state and foreign income tax matters in income tax expense. Approximately $0.8 million and $0.8 million of gross interest and penalties were accrued at March 29, 2014 and March 30, 2013, respectively and is not included in the amounts above. There was no benefit for the period ended March 29, 2014, a benefit of $0.1 million for the period ended March 30, 2013 and a provision of $0.3 million for the period ended and March 31, 2012, of accrued interest in our statements of operations. We conduct business globally and, as a result, file consolidated and separate Federal, state and foreign income tax returns in multiple jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. With a few exceptions overseas, we are no longer subject to U.S. federal, state and local, or foreign income tax examinations for years before 2010.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration