13. Income Taxes

The following table presents the Company’s income tax expense (benefit):

The Company recorded an income tax expense of $2.4 million and an income tax benefit of $1.6 million for the three months ended September 28, 2014 and September 29, 2013, respectively. The Company’s income tax expense was $8.7 million and the income tax benefit was $0.9 million for the nine months ended September 28, 2014 and September 29, 2013, respectively.

The tax expense for the three months and the nine months ended September 28, 2014 was primarily attributable to pre-tax income in foreign jurisdictions and withholding taxes related to licensing revenues.

The tax benefit for the three months and nine months ended September 29, 2013 was primarily attributable to pre-tax income in foreign jurisdictions and withholding taxes related to licensing revenues. This was offset by the release of reserves for uncertain tax positions in foreign locations and the tax impact from the MCA business acquisition.

As of September 28, 2014, 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 29, 2013, the Company had U.S. federal and state net operating loss carry forwards of approximately $1,016 million and $219.8 million, respectively. Approximately $489.7 million of the federal net operating loss carry forwards are subject to an annual limitation of $27.2 million. These federal and state net operating losses, if not utilized, expire from 2016 to 2033. The Company also has U.S. federal credit carryovers of $3.5 million, which expire from 2020 to 2033. The Company also has state tax credits of $18.2 million, which includes California state tax credits of $17.5 million, which can be carried forward indefinitely.

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.