XML 51 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
9 Months Ended
Jul. 29, 2012
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE 9 - INCOME TAXES
 
   The effective income tax rates for the three and nine month periods ended July 29, 2012, differ from the U.S. statutory rate of 35% primarily due to changes in the deferred tax asset and valuation allowance, combined with income taxed at lower rates in non-U.S. jurisdictions. The effective income tax rates for the three and nine month periods ended July 31, 2011, differ from the U.S. statutory rate primarily due to the impact of the non-deductible debt extinguishment losses recorded in the second and third quarters of fiscal 2011, combined with income taxed at lower rates in non-U.S. jurisdictions, which were offset by the impact of a foreign subsidiary's tax settlement in the three month period ended July 31, 2011. Entities within certain jurisdictions are excluded from the Company's effective income tax rate if they are projected to generate a loss for the year and the tax benefits of such losses are not anticipated to be realized in the foreseeable future.
 
   The net liability for unrecognized tax benefits included in the condensed balance sheets at July 29, 2012 and October 30, 2011, is $3.9 million and $1.9 million, respectively, $2.0 million and $1.9 million which if recognized, would reduce the Company's effective tax rate. In the nine month period ended July 29, 2012, the Company recorded gross unrecognized tax benefits of $1.9 million, related to tax return filing positions claimed in the current period.  These unrecognized tax benefits did not have a material  impact on the effective tax rate, as the corresponding tax benefits were offset by a previously recorded valuation allowance.

   PKLT, the Company's FPD manufacturing facility in Taiwan, is accorded a tax holiday which commences in 2012 and expires in 2017.  Due to PKLT's current tax loss position, the tax holiday did not impact the Company's 2012 effective tax rate, and had no dollar or per share effect in the three or nine month periods ended July 29, 2012 and July 31, 2011.