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Income Taxes
3 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company's effective tax rate was approximately 32.1% and 41.3% for the three months ended September 30, 2016 and September 25, 2015 respectively. The primary reconciling items between the federal statutory rate of 35.0% and the Company's overall effective tax rate for the three months ended September 30, 2016 were the effect of state income taxes offset by tax benefits related to the U.S. Research and Development credit, U.S. Domestic Production Activities deduction and the effective settlement of uncertain tax positions. The primary reconciling items between the federal statutory rate of 35.0% and the Company's overall effective tax rate for the three months ended September 25, 2015 were the effect of state income taxes.

As of September 30, 2016, the recorded liability for uncertain tax positions under the measurement criteria of Accounting Standards Codification ("ASC") Topic 740, Income Taxes, was $903. The effective settlement of uncertain tax positions resulted in a decrease in the recorded liability of $1,344 during the three months ended September 30, 2016, which resulted in a net decrease to the provision for income taxes of $294. The Company does not expect the amount of unrecognized tax benefits to materially change within the next twelve months.
As a result of the early adoption of ASU 2016-09 in the three months ended September 30, 2016, excess tax benefits and tax deficiencies will be classified to the statement of operations prospectively instead of additional paid-in capital. The Company's effective tax rate for the three months ended September 30, 2016 was not materially impacted by the adoption of ASU 2016-09. The Company recorded a net tax deficiency of $6 during the three months ended September 30, 2016 which discretely increased the provision for income taxes.
In the first quarter of fiscal year 2017, the IRS concluded its income tax examination for fiscal year 2014. No adjustments were proposed.