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

Note 4—Income Taxes

Income tax expense was $2.5 million on pre-tax loss of $54.2 million for the six months ended July 1, 2017, as compared to an income tax benefit of $11.8 million on pre-tax loss of $4.3 million for the six months ended July 2, 2016. The second quarter’s effective income tax rate was 6.7% compared to (34.8%) in the comparable prior year period. The increase in the income tax expense was due primarily to the Company no longer recognizing tax benefits in the United States and Canada. The effective tax rate differs from the Canadian statutory rate primarily due to losses in tax jurisdictions for which we have not recognized a tax benefit, significant permanent differences for which we have recognized a tax benefit and income in tax jurisdictions with lower statutory tax rates than Canada.