10.

Income Taxes

The effective tax rates for the three and six months ended July 2, 2016 were 31.5% and 30.0%, respectively. The effective tax rates for the three and six months ended July 4, 2015 were 40.2% and 40.7%, respectively. For both the three and six months ended July 2, 2016, the primary difference between the US federal statutory tax rate and the Company’s consolidated effective tax rate was due to the reversal of a $2.5 million valuation allowance related to tax benefits for foreign losses that are now expected to be realized. For both the three and six months ended July 4, 2015, the primary differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate were state income taxes, increases in valuation allowances and tax reserves.