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Income Taxes
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3 Months Ended |
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Dec. 30, 2012
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| Notes to Financial Statements [Abstract] | |
| Note 4 - Income Taxes |
Note 4 — Income Taxes
Based on the tax law that was in effect at the end of the first quarter of fiscal 2013, the Company estimated its annual effective income tax rate to be approximately 19% for fiscal 2013, which is consistent with the 19% effective income tax rate for fiscal 2012. The annual effective tax rate for fiscal 2013 consisted of increased tax benefits from higher earnings taxed at rates that are less than the United States federal tax rate, offset by a lower federal research and development tax credit as compared to fiscal 2012. The annual effective tax rate for fiscal 2012 reflected the United States federal research and development credit generated through December 31, 2011, the date on which the credit expired. Tax benefits from foreign earnings taxed at rates that are less than the United States federal tax rate are expected to be approximately 17% of earnings before taxes for fiscal 2013 as compared to 15% in fiscal 2012.
The American Taxpayer Relief Act of 2012, which reinstated the United States federal research and development tax credit retroactively from January 1, 2012 through December 31, 2013, was not enacted into law until the second quarter of fiscal 2013. Therefore, the expected tax benefit resulting from such reinstatement for fiscal 2013 will not be reflected in the Company's estimated annual effective tax rate for fiscal 2013 until the second fiscal quarter. Additionally, the Company expects to record a discrete tax benefit in the second quarter of fiscal 2013 related to the reinstatement of the federal research and development tax credit for fiscal 2012. After consideration of both of these items, the Company estimates its annual effective income tax rate for fiscal 2013 will be approximately 16%.
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