12. Income Taxes

The provision for income taxes was as follows:

	For the Three Months Ended						For the Nine Months Ended
	March 26, 2017			March 27, 2016			March 26, 2017			March 27, 2016
Provision for income taxes	$	831		$	4,166		$	6,481		$	10,194
Effective tax rate		8.3	%		31.0	%		22.2	%		30.5	%

The effective tax rates for the periods presented above are lower than the U.S. statutory tax rate primarily due to foreign income being taxed at lower rates and a decrease in the valuation allowance for the Company’s investment in PAL, partially offset by losses in tax jurisdictions for which no tax benefit could be recognized and state and local income taxes net of federal benefits. Additionally, the effective tax rates for the three months and nine months ended March 26, 2017 include the benefit of increased research and development credits, partially offset by a corresponding reduction in the domestic production activities deduction.

The Company regularly assesses the outcomes of both completed and ongoing examinations to ensure that the Company’s provision for income taxes is sufficient. Certain returns that remain open to examination have utilized carryforward tax attributes generated in prior tax years, including net operating losses, which could potentially be revised upon examination.

Components of the Company’s deferred tax valuation allowance are as follows:

	March 26, 2017			June 26, 2016
Investment in a former domestic unconsolidated affiliate	$	(6,326	)	$	(6,418	)
Equity-method investment in PAL		(1,462	)		(2,102	)
Certain NOLs ⁽¹⁾		(7,715	)		(5,030	)
Foreign tax credits		(562	)		—
Total deferred tax valuation allowance	$	(16,065	)	$	(13,550	)

(1)	Certain net operating losses outside the U.S. consolidated tax filing group.