Income Taxes

The following table presents the Company’s benefit for income taxes for the first quarters ended March 29, 2016 and March 31, 2015 (dollars in thousands):



	Fiscal Quarter Ended
	March 29, 2016			March 31, 2015
Benefit for income taxes	$	(1,094	)	$	(1,795	)
Effective tax rate	31.6		%	39.5		%

During the first quarter of 2016, the Company determined that it was appropriate to record a valuation allowance against Canadian deferred tax assets due to the recent launch of operations in Canada, which are not yet profitable. The Company will maintain a valuation allowance against Canadian deferred tax assets until there is sufficient positive evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit to the effective tax rate.

The 2016 estimated annual effective tax rate is expected to be between 50% and 55% compared to 38.8% for 2015. The tax rate is estimated to be higher for 2016 primarily due to increased non-deductible expenses, including the valuation allowance described above, that have greater weight when compared to current year forecasted pre-tax book income.