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INCOME TAXES | 12 Months Ended
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Mar. 28, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Domestic and foreign income before provision for income tax is as follows:
(In thousands) | March 28, 2015 |  | March 29, 2014 |  | March 30, 2013
Domestic | $ | (17,265 | ) |  | $ | (6,859 | ) |  | $ | 17,360 |
Foreign | 48,430 |  |  | 43,260 |  |  | 32,537 |
Total | $ | 31,165 |  |  | $ | 36,401 |  |  | $ | 49,897 |
The income tax provision contains the following components:
(In thousands) | March 28, 2015 |  | March 29, 2014 |  | March 30, 2013
Current |  |  |  |  |  |  |  |
Federal | $ | 3,526 |  |  | $ | (4,896 | ) |  | $ | 3,795 |
State | 898 |  |  | 873 |  |  | 1,324 |
Foreign | 5,614 |  |  | 5,478 |  |  | 5,389 |
Total current | $ | 10,038 |  |  | $ | 1,455 |  |  | $ | 10,508 |
Deferred |  |  |  |  |  |  |  |
Federal | 1,227 |  |  | (1,785 | ) |  | 1,644 |
State | 3,215 |  |  | 207 |  |  | (229 | )
Foreign | (212 | ) |  | 1,376 |  |  | (826 | )
Total deferred | $ | 4,230 |  |  | $ | (202 | ) |  | $ | 589 |
Total | $ | 14,268 |  |  | $ | 1,253 |  |  | $ | 11,097 |
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. Our subsidiary in Switzerland operates as a principle company for direct federal tax purposes. Operating under this structure affords our Swiss subsidiary a reduced tax rate in Switzerland. Our Swiss subsidiary also operates under a 10 year tax holiday set to expire in 2018. Tax affected, significant temporary differences comprising the net deferred tax liability are as follows:
(In thousands) | March 28, 2015 |  | March 29, 2014
Depreciation | $ | (23,733 | ) |  | $ | (23,658 | )
Amortization | (24,038 | ) |  | (18,618 | )
Inventory | 6,189 |  |  | 7,371 |
Hedging | 84 |  |  | 321 |
Accruals, reserves and other | 15,927 |  |  | 10,368 |
Net operating loss carry-forward | 5,392 |  |  | 1,507 |
Stock based compensation | 10,652 |  |  | 8,757 |
Tax credit carry-forward, net | 8,678 |  |  | 2,660 |
Gross deferred taxes | $ | (849 | ) |  | $ | (11,292 | )
Less valuation allowance | (16,027 | ) |  | (3,083 | )
Net deferred tax liability | $ | (16,876 | ) |  | $ | (14,375 | )
The valuation allowance increased by $12.9 million during 2015, primarily due to recording a valuation allowance against domestic deferred tax assets that we have determined are not more-likely-than-not realizable. In determining the need for a valuation allowance, we have assessed the available means of recovering deferred tax assets, including the ability to carryback net operating losses, the existence of reversing temporary differences, the availability of tax planning strategies and available sources of future taxable income. We have also considered the ability to implement certain strategies that would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets. We believe we are able to support the deferred tax assets recognized as of the end of the year based on all of the available evidence. The worldwide net deferred tax liability as of March 28, 2015 includes deferred tax liabilities related to amortizable goodwill, which are indefinite lived and are not considered to be a source of taxable income. As of March 28, 2015, we maintain a valuation allowance against the portion of our U.S. net deferred tax assets that are not more-likely-than-not realizable and a full valuation allowance against the net deferred tax assets of certain foreign subsidiaries. At March 28, 2015, we have U.S. federal net operating loss carry-forwards of approximately $11.7 million, U.S. state net operating loss carry-forwards of $23.6 million, federal tax credit carry-forwards of $6.4 million and state tax credit carry-forwards of $4.0 million that are available to reduce future taxable income. A portion of 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 28, 2015, $1.5 million of the federal net operating loss carry-forwards, $4.0 million of the state net operating loss carry-forwards, none 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 federal and state net operating losses begin to expire in 2022 and 2019, respectively. The federal and state tax credits begin to expire in 2023 and 2025, respectively. As of March 28, 2015, we have foreign net operating losses of approximately $6.6 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 $300.2 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 35.0% U.S. federal statutory income tax rate due to the following:
(In thousands) | March 28, 2015 |  | March 29, 2014 |  | March 30, 2013
Tax at federal statutory rate | $ | 10,907 |  |  | 35.0 | % |  | $ | 12,739 |  |  | 35.0 | % |  | $ | 17,464 |  |  | 35.0 | %
Domestic manufacturing deduction | — |  |  | — | % |  | — |  |  | — | % |  | (504 | ) |  | (1.0 | )%
Difference between U.S. and foreign tax | (6,929 | ) |  | (22.2 | )% |  | (10,846 | ) |  | (29.8 | )% |  | (5,584 | ) |  | (11.2 | )%
State income taxes net of federal benefit | (818 | ) |  | (2.6 | )% |  | (252 | ) |  | (0.7 | )% |  | 718 |  |  | 1.4 | %
Change in uncertain tax positions | (1,762 | ) |  | (5.7 | )% |  | (1,678 | ) |  | (4.6 | )% |  | (580 | ) |  | (1.2 | )%
Intercompany loan deduction | — |  |  | — | % |  | (2,185 | ) |  | (6.0 | )% |  | — |  |  | — | %
Non-deductible expenses | 1,237 |  |  | 4.0 | % |  | 1,035 |  |  | 2.8 | % |  | 1,178 |  |  | 2.4 | %
Research credits | (1,000 | ) |  | (3.2 | )% |  | (688 | ) |  | (1.9 | )% |  | (799 | ) |  | (1.6 | )%
Naked Credit | 3,826 |  |  | 12.3 | % |  | — |  |  | — | % |  | — |  |  | — | %
Valuation allowance | 8,524 |  |  | 27.4 | % |  | 2,400 |  |  | 6.6 | % |  | — |  |  | — | %
Other, net | 283 |  |  | 0.8 | % |  | 728 |  |  | 2.0 | % |  | (796 | ) |  | (1.6 | )%
Income tax provision | $ | 14,268 |  |  | 45.8 | % |  | $ | 1,253 |  |  | 3.4 | % |  | $ | 11,097 |  |  | 22.2 | %
Unrecognized Tax Benefits Unrecognized tax benefits represent uncertain tax positions for which reserves have been established. As of March 28, 2015, we had $7.1 million of unrecognized tax benefits, of which $2.0 million would impact the effective tax rate, if recognized. 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. At 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. During the fiscal year ended March 28, 2015 our unrecognized tax benefits were increased by $1.5 million due primarily to tax reserve increases for prior year additions, partially offset by 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 28, 2015, March 29, 2014 and March 30, 2013:
(In thousands) | March 28, 2015 |  | March 29, 2014 |  | March 30, 2013
Beginning Balance | $ | 5,604 |  |  | $ | 6,930 |  |  | $ | 6,885 |
Additions based upon positions related to the current year | — |  |  | — |  |  | 1,192 |
Additions for tax positions of prior years | 3,234 |  |  | 990 |  |  | 18 |
Settlements with taxing authorities | (338 | ) |  | — |  |  | (80 | )
Closure of statute of limitations | (1,430 | ) |  | (2,316 | ) |  | (1,085 | )
Ending Balance | $ | 7,070 |  |  | $ | 5,604 |  |  | $ | 6,930 |
As of March 28, 2015 we anticipate that the liability for unrecognized tax benefits for uncertain tax positions could change by up to $0.9 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 $0.7 million and $0.8 million of gross interest and penalties were accrued at March 28, 2015 and March 29, 2014, respectively and is not included in the amounts above. There was a benefit included in tax expense of $0.3 million, zero and $0.1 million for the periods ended March 28, 2015, March 29, 2014 and March 30, 2013, respectively. 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 2012.

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- 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=26873400&loc=d3e23780-122690 Reference 3: 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 4: 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 5: 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 + Details
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