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Note 10. Income Taxes
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Sep. 30, 2012
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| Income Tax Disclosure [Text Block] |
10.
Income Taxes
The
following table presents the Company’s income tax
expense:
The
Company’s tax expense decreased from $8.6 million for
the three months ended September 25, 2011 to $2.8 million
for the three months ended September 30, 2012. The decrease
was primarily related to the amount of withholding taxes on
licensing revenue from Samsung. The tax expense decreased
from $15.4 million for the nine months ended September 25,
2011 to $9.6 million for the nine months ended September
30, 2012. The decrease was primarily attributable to a
release of reserves for uncertain tax positions in foreign
locations and the amount of withholding taxes on licensing
revenue from Samsung, offset by the impact from the sale of
land and building in Kuala Lumpur, Malaysia.
As
of September 30, 2012, all of the Company's U.S. deferred
tax assets, net of deferred tax liabilities, continue to be
subject to a full valuation allowance. The valuation
allowance is based on the Company's assessment that it is
more likely than not that the deferred tax assets will not
be realizable in the foreseeable future.
As
of December 25, 2011, the Company had U.S. federal and
state net operating loss carry forwards of approximately
$1.0 billion and $208.0 million, respectively.
Approximately $533.6 million of the federal net operating
loss carry forwards are subject to an annual limitation of
$27.2 million. The federal and state net operating losses,
if not utilized, expire between 2016 and 2031.
If
the Company were to undergo an “ownership
change” for purposes of Section 382 of the Internal
Revenue Code of 1986, as amended, its ability to utilize
its federal net operating loss carry forwards could be
limited under certain provisions of the Internal Revenue
Code. As a result, the Company could incur greater tax
liabilities than it would in the absence of such a
limitation and any incurred liabilities could materially
adversely affect the Company’s results of operations
and financial condition.
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