10.

Income Taxes

The effective tax rates for the three months ended October 1, 2016 and October 3, 2015 were 10.3% and 33.1%, respectively. The primary differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate were due to net tax benefits arising from a research and development tax credit and a Section 199 deduction primarily related to prior periods, partially offset by income tax expenses recorded for out-of-period adjustments. See Note 1 for additional information on these adjustments.

The effective tax rates for the nine months ended October 1, 2016 and October 3, 2015 were 18.6% and 37.2%, respectively. The primary differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate were due to net tax benefits arising from a research and development tax credit and a Section 199 deduction primarily related to prior periods and the reversal of a valuation allowance related to tax benefits for foreign losses that are now expected to be realized. These benefits were partially offset by income tax expenses recorded for out-of-period adjustments. See Note 1 for additional information on these adjustments.

The differences between the US federal statutory tax rate and the Company’s consolidated effective tax rate are as follows:


	Three Months Ended						Nine Months Ended
	October 1,			October 3,			October 1,			October 3,
	2016			2015			2016			2015
US federal statutory rate		35.0	%		35.0	%		35.0	%		35.0	%
Research and development credit		-39.6	%		0.0	%		-24.0	%		0.0	%
Reserves for uncertain tax positions		7.4	%		-1.1	%		5.2	%		0.2	%
Out-of-period adjustments		7.0	%		0.0	%		4.0	%		0.0	%
Reversal to valuation allowance		0.0	%		0.0	%		-3.8	%		0.0	%
Other		0.5	%		-0.8	%		2.2	%		2.0	%

Effective tax rate		10.3	%		33.1	%		18.6	%		37.2	%