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Income Taxes
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9 Months Ended |
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Mar. 31, 2012
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| Income Tax Disclosure [Abstract] | |
| Income Tax Disclosure [Text Block] |
Income Taxes
We had an effective income tax benefit of 45.6% for the nine months ended March 31, 2012 compared to an effective tax provision of 26.0% for the same period in the prior year and an effective tax provision of 23.6% for the fiscal year ended July 2, 2011. During the second quarter of fiscal year 2012, we recorded a $16.2 million writedown of our inventory value. We accounted for this one-time adjustment as a discrete item for tax provision purposes, thereby creating an income tax benefit in the second quarter and first nine months of fiscal 2012. Excluding the effect of this discrete item, the effective tax rate on normal operations for the nine months ending March 31, 2012 was 5.5% and we anticipate the effective tax, excluding the effect of the discrete item, for fiscal year 2012 to be in the mid to upper single digit range. During the third quarter of fiscal year 2011, we further developed our tax planning strategies, allowing us to keep more profits in Honduras, a tax-free zone, thereby reducing our overall effective tax rate on a prospective basis.
We file income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state, local or non-U.S. income tax examinations by tax authorities for our tax years before 2008. However, net operating loss carryforwards remain subject to examination to the extent they are carried forward and impact a year that is open to examination by tax authorities.
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