INCOME TAXES

Income tax expense differs from the expected amounts based on the statutory federal tax rates for the three and six months ended June 28, 2014 and June 29, 2013 as follows:



	Three months ended						Six months ended
(In thousands)	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Expected federal income tax (benefit) expense at statutory rate	$	(12,972	)	$	9,554		$	(6,478	)	$	17,112
Effect of foreign source income	(7,766		)	(2,055		)	(9,498		)	(3,683		)
Effect of foreign dividend	(3,722		)	—			(4,736		)	—
Nondeductible acquisition costs	1,856			—			1,856			—
Other items, net	159			17			654			(715		)
Income tax (benefit) expense	$	(22,445	)	$	7,516		$	(18,202	)	$	12,714

The Company’s year-to-date effective tax rate associated with the income tax benefit was 98.3% in 2014, compared to an effective tax rate of 26.0% in connection with income tax expense in 2013. This variance reflects changes in the Company's geographic composition of income toward jurisdictions with lower tax rates, nondeductibility of certain acquisition-related expenditures incurred in connection with the ATMI acquisition and the benefit of a foreign dividend. The effective tax rate in 2013 included a $1.3 million benefit associated with the reinstatement of the U.S. federal credit for increasing research expenditures, as retroactively signed into law and recorded by the Company in the first quarter of 2013.