11.	INCOME TAXES

Our effective tax rate for the nine months of fiscal 2016 was 28% compared to 32% for the same period in fiscal 2015. The decrease in the effective income tax rate was due to changes in the geographic mix of income or loss between tax jurisdictions, as well as out-of-period corrections recorded in the third quarter of fiscal 2016. During the third quarter of fiscal 2016, we recorded aggregate out-of-period corrections of $0.3 million of income tax expense, which decreased net assets and net income for the third quarter and full year of fiscal 2016 by that amount. These corrections were primarily associated with the understatement of income tax expense associated with intercompany profits earned by certain foreign subsidiaries offset by an income tax benefit relating to the return-to-provision adjustment.

We recorded income tax expense during the nine months of fiscal 2016 of $4.1 million compared to $5.5 million for the corresponding period in fiscal 2015, primarily as a result of a decrease in pre-tax income period-over-period. We have not provided any U.S. income taxes on the undistributed earnings of our wholly-owned foreign subsidiaries based upon our determination that such earnings will be indefinitely reinvested. In the event these earnings are later distributed to our U.S. operations, such distributions would likely result in additional U.S. tax that may be offset, at least in part, by associated foreign tax credits.

Our unrecognized tax benefits were $1.2 million as of July 31, 2016 and $1.1 million as of October 31, 2015, and in each case included accrued interest.

We recognize accrued interest and penalties related to unrecognized tax benefits as components of income tax expense. As of July 31, 2016, the gross amount of interest accrued, reported in Accrued expenses and other, was approximately $50,000, which did not include the federal tax benefit of interest deductions.

We file U.S. federal and state income tax returns, as well as tax returns in several foreign jurisdictions. The statutes of limitations with respect to unrecognized tax benefits will expire between July 2017 and July 2019.