XML 29 R12.htm IDEA: XBRL DOCUMENT v3.2.0.727
Income Tax Expense (Benefit)
6 Months Ended
Jul. 04, 2015
Income Tax Disclosure [Abstract]  
Income Tax Expense (Benefit)
Income Tax Expense (Benefit)
The effective tax rate is calculated by dividing our income tax expense (benefit) by income (loss) before provision for (benefit from) income taxes. Our effective income tax rates for the fiscal second quarters ended July 4, 2015 and July 5, 2014 were (1,800.7)% and (11.2)%, respectively. The effective income tax rates for the six months ended July 4, 2015 and July 5, 2014 were 31.6% and (0.1)%, respectively.
The effective tax rate for the second quarter of fiscal 2015 was substantially due to an allocation of income tax expense to other comprehensive income (loss) for an actuarial gain associated with the curtailment of our pension plan which resulted in a benefit to continuing operations. Due to the income recognized in other comprehensive income for the pension curtailment during the second quarter of fiscal 2015, the intraperiod tax allocation rules require that we allocate income tax expense to other comprehensive income and recognize an income tax benefit in continuing operations even though our loss from continuing operations does not provide a current period incremental tax benefit due to our full valuation allowance at the beginning and end of the period.
The effective tax rate for the first six months of fiscal 2015 was due to the actuarial gain associated with the aforementioned curtailment of our pension plan for the fiscal second quarter 2015, and a full valuation allowance recorded against our tax benefit. The tax benefit to continuing operations for the second quarter of fiscal 2015 and the first six months of fiscal 2015 was partially offset by tax expense related to gross receipts, Canadian, and certain state taxes recorded on a separate company basis.
The effective tax rates for the second quarter and first six months of fiscal 2014 were largely due to a full valuation allowance recorded against our tax benefit related to our fiscal 2014 loss. Also, during the second quarter and first six months of fiscal 2014, we allocated income tax expense to other comprehensive income (loss) to the extent income was recorded in accumulated other comprehensive loss, resulting in a benefit to continuing operations.