Note 8 - Income Taxes

9 Months Ended

Sep. 26, 2015

. Income

Taxes

The effective tax rate for the third quarter of 2015 was 10.4% compared to an effective tax rate of 27.3% in the third quarter of 2014

. The effective tax rate for the nine months ended September 26, 2015 was 21.8% as compared to an effective tax rate of 25.0% for the nine months ended September 27, 2014. The effective tax rates for both the third

Notes to

CONDENSED

Consolidated Financial Statements (Unaudited)

8. Income taxes, continued

quarter and nine month periods of 2015 and 2014 are lower than the U.S. statutory tax rate primarily due to the result of income earned in lower tax jurisdictions and, with respect to the 2015 periods, the impact of the pension settlement partially offset by the impact from the restructuring of the legal ownership of the company’s Mexican manufacturing operations as of June 28, 2015.

The following tables set forth the components of pre-tax income/(expense) and the effective tax rates for the three and nine months ended September 26, 2015 (in thousands).

	For the Three Months ended September 26, 2015
Pre-tax income/(expense) category	Pre-tax income/(expense) amount			Income tax (expense)/benefit			Effective tax rate
Pension settlement	$	(30,194	)	$	10,722			35.5	%
Legal restructuring tax impact		—			(1,949	)		—
All other income/(expense)		42,835			(10,090	)		23.6	%
Total consolidated	$	12,641		$	(1,317	)		10.4	%

	For the Nine Months ended September 26, 2015
Pre-tax income/(expense) category	Pre-tax income/(expense) amount			Income tax (expense)/benefit			Effective tax rate
Pension settlement	$	(30,194	)	$	10,722			35.5	%
Legal restructuring tax impact		—			(1,949	)		—
All other income/(expense)		106,958			(25,534	)		23.9	%
Total consolidated	$	76,764		$	(16,761	)		21.8	%