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Income Taxes
6 Months Ended
Jul. 02, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The effective tax rate for the three months ended July 2, 2016 was 24.9% versus 26.0% for the three months ended July 4, 2015. The effective tax rate for the six months ended July 2, 2016 was 24.1% versus 26.0% for the six months ended July 4, 2015. The change in the effective tax rate for the three months and six months ended July 2, 2016 was primarily driven by the mix of earnings, partially offset by the gain derived from the sale of the Mastergear business. The lower effective rate as compared to the 35.0% statutory Federal income tax rate is driven by lower foreign tax rates.
As of July 2, 2016 and January 2, 2016, the Company had approximately $8.6 million and $8.3 million, respectively, of unrecognized tax benefits, all of which would impact the effective income tax rate if recognized. Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense.
With few exceptions, the Company is no longer subject to U.S. Federal and state/local income tax examinations by tax authorities for years prior to 2011, and the Company is no longer subject to non-U.S. income tax examinations by tax authorities for years prior to 2009.