Income Taxes

At the end of each interim reporting period, the Company makes an estimate of its annual effective income tax rate. Tax expense in interim periods is calculated at the estimated annual effective tax rate plus or minus the tax effects of items of income and expense that are discrete to the period. The estimate used in providing for income taxes on a year-to-date basis may change in subsequent interim periods.

The following table provides details of income taxes:



	Three Months Ended
	April 1, 2017			April 2, 2016
Net earnings before income taxes	$	120		$	22
Income tax expense	42			5
Effective tax rate	35		%	23		%

The Company recorded $42 million of net tax expense in the first quarter of 2017 resulting in an effective tax rate of 35%, compared to $5 million of net tax expense in the first quarter of 2016 resulting in an effective tax rate of 23%. The effective tax rate in the first quarter of 2017 was equal to the U.S. statutory tax rate of 35%. The effective tax rate in the first quarter of 2016 was lower than the U.S. statutory tax rate of 35% primarily due to the recognition of excess tax benefits on share-based compensation in income tax expense. The effective tax rate in the first quarter of 2016 was also positively impacted by the release of unrecognized tax benefit reserves, offset by increases in state valuation allowances and other adjustments to certain deferred tax assets.