Income Taxes

The Company’s provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.

The components of the effective tax rate are as follows (in thousands, except percentage):



	Quarters Ended						Nine Months Ended
	October 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Income (loss) before income taxes	$	2,814		$	(3,088	)	$	(20,731	)	$	(43,785	)
Income tax expense	2,996			2,116			5,777			4,879
Effective tax rate	106.5		%	(68.5		)%	(27.9		)%	(11.1		)%

The effective tax rates for the quarters and nine months ended October 1, 2016 and October 3, 2015 vary from the statutory rate primarily as a result of operating losses in the U.S. with no tax benefit recognized due to the valuation allowance against net U.S. deferred tax assets, tax expense on foreign income, as well as adjustments made to deferred tax liabilities as a result of tax rate and applicable tax law changes in certain jurisdictions.