Note 9:

Income Taxes

We recognized income tax expense of $2.7 million and $2.6 million for the three and nine months ended September 28, 2014, respectively. The effective tax rate for the three and nine months ended September 28, 2014 was 7.3% and 4.2%, respectively. Our income tax expense for the three and nine months ended September 28, 2014 included benefits of $1.2 million and $4.9 million, respectively, for the reduction of uncertain tax position liabilities, primarily due to favorable developments with a foreign tax audit and transfer pricing matters. In addition, our income tax expense for the three and nine months ended September 28, 2014 included benefits of $2.3 million and $3.3 million, respectively, primarily due to adjusting estimates in our income tax provision to the actual amounts on the U.S. and Canadian federal income tax returns.

In addition to the factors noted above, the tax rate differential associated with our foreign earnings contributed to the difference between the effective tax rate and the amount determined by applying the applicable statutory United States tax rate of 35%. Foreign tax rate differences reduced our income tax expense by approximately $9.7 million and $8.6 million for the nine months ended September 28, 2014 and September 29, 2013, respectively.