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Income Taxes
9 Months Ended
Sep. 27, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which the Company operates. However, losses in certain jurisdictions and discrete items, such as the resolution of uncertain tax positions, are treated separately.
The Company’s effective income tax rate for the third quarter and first nine months of 2015 was 21.4% and 26.3% respectively. The Company’s effective income tax rate for the third quarter and first nine months of 2014 was 19.2% and 24.6%, respectively. The first nine months of 2015 included $8.5 million in net discrete income tax benefits, compared with net discrete income tax benefits of $8.2 million for the first nine months of 2014. The third quarter of 2015 included net discrete income tax benefits of $7.4 million compared with net discrete income tax benefits of $6.1 million for the third quarter of 2014. The net discrete income tax benefits in 2015, included the remeasurement of uncertain tax positions due to expiration of statute of limitations, favorable resolution of tax matters, and certain deferred tax adjustments. The net discrete income tax benefits in 2014, included the remeasurement of uncertain tax positions, primarily due to an expiration of statute of limitations and a favorable resolution of a tax matter. Excluding net discrete income tax items in both periods, the effective tax rates would have been 33.5% for the third quarter of 2015 and 30.8% for the first nine months of 2015 and 28.1% for the third quarter of 2014 and 28.5% for the first nine months of 2014. During the next twelve months, it is reasonably possible that expirations of the statutes of limitations could reduce unrecognized tax benefits by $3.6 million. Of the $3.6 million, $3.1 million would affect the effective tax rate.