INCOME TAXES

Our effective income tax rates for the three months ended January 27, 2017 and January 29, 2016 are as follows:



	Three Months Ended
	January 27, 2017		January 29, 2016
Effective tax rate	22.7	%	25.8	%

The first quarter 2017 effective tax rate is lower than the prior year due to the impact of the cumulative effect of tax laws that were enacted during the period in the U.S., Germany and France. The first quarter 2016 effective tax rate was primarily driven by favorable foreign tax rate changes, recognition of U.S. foreign tax credits in fiscal year 2016, and the permanent extension of the U.S. research and development tax credit.

At October 28, 2016, we had a $19,067 liability recorded for gross unrecognized tax benefits (excluding interest and penalties) in other long-term liabilities. Of this total, $16,674 represents the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. As of October 28, 2016, we had accrued approximately $4,179 of interest and penalties relating to unrecognized tax benefits. There were no material adjustments to our recorded liability for unrecognized tax benefits or interest and penalties during the first quarter of fiscal years 2017 or 2016.