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Interest and Other Income (Expense), Net
Interest and other income (expense), net decreased by
$16.9 millionduring fiscal 2013, to $4.1 millionof expense from $12.8 millionof income during fiscal 2012. This decrease was primarily driven by (i) a reduction in other income primarily due to the absence in 2013 of $9.4 millionof insurance proceeds received in fiscal 2012 from our claims on loss associated with the Thailandflooding, (ii) $3.4 millionof additional loss realized from the repurchase of $150.0 millionaggregate principal amount of 1% Senior Convertible Notes at or below par during fiscal 2013 and (iii) a $2.8 millionunfavorable variance in foreign exchange results in fiscal 2013 compared to fiscal 2012. This was partially offset by a $0.6 milliondecrease in various other expenses. During fiscal 2012, interest and other income (expense), net increased by $7.2 million, to $12.8 millionof income from $5.6 millionof income in fiscal 2011. The increase was primarily due to $9.4 millionof other income recorded in fiscal 2012 related to the insurance proceeds received from our claims on loss associated with the Thailandflooding. This increase was partially offset by $0.7 millionloss on repurchase of convertible notes in fiscal 2012.
Interest expense decreased by
$9.4 million, or 34.4%, to $17.9 millionfrom $27.3 millionin fiscal 2013 compared to fiscal 2012. The decrease in interest expense during fiscal 2013 was primarily due to repurchases of $150.0 millionof the aggregate principal amount of the 1% Senior Convertible Notes during the first three quarters of fiscal 2013 and the redemption of the remaining $161.0 millionaggregate principal amount of our 1% Senior Convertible Notes in the fourth quarter of fiscal 2013. During fiscal 2012, interest expense increased by $1.9 million, or 7.5%, to $27.3 millionfrom $25.4 millionin fiscal 2011, primarily due to an increase in accretion of debt discount cost.
(Benefit from) Provision for Income Tax
Fiscal 2013 Tax Expense / Benefit
We recorded an income tax benefit of
$103.9 millionfor 2013. The expected tax benefit derived by applying the federal statutory rate to our loss before income taxes for fiscal 2013 differed from the income tax benefit recorded primarily due to a net reduction in our valuation allowance related to valuation allowance releases, utilization of foreign net operating losses, and the recognition of tax credits generated during the current year. During fiscal 2013, we determined that it is more likely than not that the deferred tax assets of a subsidiary in a non-U.S. jurisdiction (the "foreign subsidiary") will be realized after considering all positive and negative evidence. Prior to fiscal 2013, because of significant negative evidence including principally continued economic uncertainty in the industry in the foreign jurisdiction specifically and reorganization activity that would adversely affect the foreign subsidiary's future operations and profitability on a continuing basis in future years, we determined that it was more likely than not that the deferred tax assets would not be realized. However, during fiscal 2013, the foreign subsidiary had realized cumulative pre-tax income for the preceding three years and had forecasted future pre-tax income sufficient to realize its deferred tax assets. Upon considering the relative impact of all evidence, both negative and positive, and the weight accorded to each, we concluded that it was more likely than not that the deferred tax assets of the foreign subsidiary would be realized and that the applicable valuation allowance should be released.