6Income Taxes

For the three and nine months ended June 27, 2014 and June 28, 2013, the Company’s earnings before tax, tax expense and effective income tax rate attributable to earnings before income taxes was as follows:



	Three Months Ended				Nine Months Ended
	June 27		June 28		June 27		June 28
(thousands, except tax rate data)	2014		2013		2014		2013
Income before income taxes	$	10,105	$	15,510	$	18,399	$	29,183
Income tax expense	$	5,407	$	1,856	$	8,490	$	6,345
Effective income tax rate		53.5%		12.0%		46.1%		21.7%

The change in the Company’s effective tax rate for the three and nine months ended June 27, 2014 versus the prior year periods was primarily due to goodwill impairment with no tax benefit and the reversal of a valuation allowance on foreign tax credits in the prior year period. Further contributing to the difference for the nine month period was the retroactive research and development credit enactment in the prior year period, which expired in the current year period. Additional differences in the effective tax rates related to earnings disparity in tax jurisdictions with deferred tax valuation allowances in the current period versus the prior year period. The tax jurisdictions where such entities with a valuation allowance were located in were as follows for the periods ended June 27, 2014 and June 28, 2013, respectively:



June 27		June 28
2014		2013
	Japan		Japan
	France		France
	Indonesia		Indonesia
	Italy		Italy
	Netherlands		Netherlands
	New Zealand		New Zealand
	Spain		Spain
	United Kingdom		United Kingdom

The Company would ordinarily recognize a tax expense or benefit on operating income or loss in the jurisdictions noted in the table above; however, due to the recent cumulative losses for book purposes and the uncertainty of the realization of certain deferred tax assets in these jurisdictions, the Company continues to adjust its valuation allowances resulting in effectively no recorded tax expense or benefit in these jurisdictions.

The Company regularly assesses the adequacy of its provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes. As of June 27, 2014, there was no material change in the amount of uncertain income tax positions and the Company’s 2014 fiscal year tax expense is anticipated to include approximately $350 related to uncertain income tax positions.

The Company recognizes accrued interest and penalties related to uncertain income tax positions as a component of income tax expense and is projecting accrued interest of $100 related to uncertain income tax positions for the fiscal year ending October 3, 2014.

The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign taxing jurisdictions. The Company is currently undergoing income tax examinations in Italy and Germany. The following tax years remain subject to examination by the respective tax jurisdictions:


Jurisdiction	Fiscal Years
United States	2011-2013
Canada	2009-2013
France	2009-2013
Germany	2009-2013
Italy	2009-2013
Japan	2012-2013
Switzerland	2003-2013