Note 8 - Income Taxes

6 Months Ended

Jul. 01, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8.

Income Taxes

The effective tax rate

s for the 

three

and

six

months ended

July 1, 2017

was 

15.2%

and

16.5%,

respectively, compared to effective tax rates for the

three

and

six

months ended

July 2, 2016

of

20.2%

and

24.0%,

respectively. The effective tax rates for all periods are lower than the U.S. statutory tax rate primarily due to income earned in lower tax jurisdictions. Further, the effective tax rate for the

second

quarter of

2017

was lower than the effective tax rate for the

second

quarter of

2016

primarily due to a larger amount of income earned in lower tax jurisdictions in the

second

quarter of

2017

compared to the

second

quarter of

2016

as well as the adoption on

January 1, 2017

of ASU

No.

2016

-

09

which resulted in the recognition of

$1.4

million and

$1.9

million of excess tax benefits from stock-based compensation as a discrete item in income tax expense for the

three

and

six

months ended

July 1, 2017,

respectively. Historically, these amounts were recorded as additional paid-in capital.