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Income Taxes
6 Months Ended
Jul. 02, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 11. INCOME TAXES

Income tax expense was $4.2 million for the three months ended July 2, 2016, compared with $6.3 million for the three months ended July 4, 2015. Our effective tax rate for the three months ended July 2, 2016, was 36.5%, and was 48.2% for the three months ended July 4, 2015. Income tax expense was $5.1 million for the six months ended July 2, 2016, compared with $10.0 million for the six months ended July 4, 2015. Our effective tax rate for the six months ended July 2, 2016, was 36.5%, and was 42.8% for the six months ended July 4, 2015.

Income tax expense in both the three and six month periods ended July 4, 2015, includes a $1.6 million discrete item of income tax expense representing income tax expense previously classified within accumulated other comprehensive losses, relating to the intraperiod income taxes on our effective aluminum hedges, allocated to other comprehensive income in the year ended January 2, 2010, which we reversed in the three months ended July 4, 2015, as the result of the culmination of our remaining cash flow hedges. Excluding this discrete item of income tax expense, the effective tax rate for the three and six month periods ended July 4, 2015, would have been 36.0% and 36.0%, respectively.

The effective tax rates in all periods, excluding the effect of the discreet item discussed above in the 2015 periods, were lower than our combined statutory federal and state tax rate of 38.8% primarily as the result of the estimated impact of the section 199 domestic manufacturing deduction.

At July 2, 2016, federal income taxes payable of $3.1 million was classified within accrued liabilities in the accompanying condensed consolidated balance sheet. At January 2, 2016, federal income taxes receivable of $3.9 million was classified within other current assets in the accompanying condensed consolidated balance sheet. During the three months ended July 2, 2016, we received a federal tax refund of $2.4 million.