XML 30 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Tax Expense (Benefit)
9 Months Ended
Oct. 03, 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 third quarters ended October 3, 2015 and October 4, 2014 were 49.0% and 7.4%, respectively. The effective income tax rates for the nine months ended October 3, 2015 and October 4, 2014 were 29.1% and 1.0%, respectively.
The effective tax rate for the third quarter of fiscal 2015 was due to income tax expense recorded in continuing operations arising from the application of certain provisions of ASC 740 regarding the effect of intra-period tax allocations resulting from other comprehensive income generated by the curtailment of our pension plan.
The effective tax rate for the first nine months of fiscal 2015 was due to the actuarial gain associated with the aforementioned curtailment of our pension plan, and a full valuation allowance recorded against our tax benefit. The tax benefit to continuing operations for the first nine 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 third quarter and first nine 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 third quarter and first nine 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.