Income Taxes

The effective tax rates for the first quarter 2016 and 2015 are as follows:



	Three Months Ended
	March 31,		March 29,
	2016		2015
Effective tax rate	34.3	%	30.2	%

CTS' effective income tax rate for the first quarter of 2016 was 34.3%, which reflects the change in the mix of earnings by jurisdiction and the impact of discrete items.

CTS' effective income tax rate was 30.2% in the first quarter of 2015. The increase in the rate is primarily attributable to recording tax expense for withholding taxes on earnings in China that are not anticipated to be maintained in China. This is partially offset by a change in treatment of non-U.S. taxes paid as a credit against income tax rather than a deduction. CTS began recording tax expense for withholding taxes in China in the fourth quarter of 2015 and expects to continue this practice going forward.

CTS’ continuing practice is to recognize interest and/or penalties related to income tax matters as income tax expense. For the three months ended March 31, 2016, and March 29, 2015, CTS accrued $184 and $0 of interest or penalties in income tax expense.