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Income Taxes
6 Months Ended
Jul. 01, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

Accounting Standards Codification 740 (“ASC 740”) requires companies to apply their estimated annual effective tax rate on a year-to-date basis in each interim period. These rates are derived, in part, from expected annual pre-tax income or loss. In the thirteen and twenty-six weeks ended July 1, 2017, the Company applied an estimated annual effective tax rate to the interim period pre-tax income to calculate the income tax expense. Under ASC 740, companies should not apply the estimated annual effective tax rate to interim financial results if the estimated annual effective tax rate is not reliably predictable. In this situation, the interim tax rate should be based on the actual year-to-date results. For the three and six month periods ended June 30, 2016, reliable projections of the Company’s annual effective tax rate were difficult to determine, producing significant variations in the customary relationship between income tax expense and pre-tax book income. As such, the Company recorded income taxes for the period based on actual year-to-date results.

For the thirteen and twenty-six weeks ended July 1, 2017, the effective income tax rates were 55.6% and 43.6%. The Company recorded a a tax provision / (benefit) for the thirteen and twenty-six weeks ended July 1, 2017 of $1,529 and $(4,221), respectively. The effective income tax rate differed from the federal statutory tax rate in the thirteen and twenty-six weeks ended July 1, 2017 primarily due to the decrease in the valuation allowance attributable to a foreign subsidiary and certain non-deductible expenses. Additionally, the effective income tax rate differed from the federal statutory tax rate in the thirteen and twenty-six weeks ended July 1, 2017 due in part to a tax benefit recorded in the current period from the reconciliation of a prior year’s tax return to the amount reported for tax provision purposes. The remaining differences between the effective income tax rate and the federal statutory rate in the thirteen and twenty-six weeks ended July 1, 2017 were due to state and foreign income taxes.

The effective income tax rates were 57.4% and 32.6% for three and six months ended June 30, 2016, respectively. The Company recorded a a tax provision / (benefit) for the three and six months ended June 30, 2016 of $2,356 and $(2,950), respectively. The effective income tax rate differed from the federal statutory tax rate in the three and six months ended June 30, 2016 due in part to a tax benefit recorded in the current period from the reconciliation of a prior year’s tax return to the amount reported for tax provision purposes. The effective income tax rate differed from the federal statutory rate in the three and six months ended June 30, 2016 due in part to a valuation reserve recorded to offset the deferred tax assets of a foreign subsidiary. The remaining differences between the federal statutory rate and the effective tax rate in the three and six months ended June 30, 2016 were primarily due to state and foreign income taxes.