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Income Taxes
8 Months Ended
Sep. 10, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The Company maintains certain strategic management and operational activities in overseas subsidiaries, and its foreign earnings are taxed at rates that are generally lower than the U.S. federal statutory income tax rate. A significant amount of the Company’s earnings are generated by its Canadian, European and Asia Pacific subsidiaries and, to a lesser extent, in other foreign jurisdictions that are not subject to income tax. The Company has not provided for U.S. taxes for earnings generated in foreign jurisdictions because it plans to reinvest these earnings indefinitely outside the U.S. However, if certain foreign earnings previously treated as permanently reinvested are repatriated, the additional U.S. tax liability could have a material adverse effect on the Company’s after-tax results of operations, financial position and cash flows.
The Company’s effective tax rate for the 12 weeks ended September 10, 2016 and September 12, 2015 was 19.5% and 29.0%, respectively. For the 36 weeks ended September 10, 2016 and September 12, 2015, the Company’s effective tax rate was 24.1% and 29.0%, respectively. The lower effective tax rate in the current year periods reflects changes in income between tax jurisdictions with differing tax rates and certain favorable discrete items in the current year.
The Company is subject to periodic audits by domestic and foreign tax authorities. Currently, the Company is undergoing routine periodic audits in both domestic and foreign tax jurisdictions. It is reasonably possible that the amounts of unrecognized tax benefits could change in the next 12 months as a result of the audits; however, any payment of tax is not expected to be significant to the consolidated financial statements.
The Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2011 in the majority of tax jurisdictions.