Income Taxes |
9 Months Ended |
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Oct. 03, 2015 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
Our overall effective tax rate, based on projected full-year taxable income (loss), was (21.2)% and 37.0% for the three months ended October 3, 2015 and September 27, 2014, respectively. Our overall effective tax rate, based on projected full-year taxable income (loss), was (25.3)% and 40.1% for the nine months ended October 3, 2015 and September 27, 2014, respectively. The effective tax rate varies from the federal statutory rate of 34% due primarily to the impact of lower foreign tax rates, the amendment of prior foreign tax returns, state taxes, share-based compensation and the book income (loss) of consolidated AAP attributable to noncontrolling interest.
We regularly evaluate both positive and negative evidence related to retaining a valuation allowance against our deferred tax assets. The realization of deferred tax assets is dependent upon sufficient future taxable income during the periods when deductible temporary differences and carryforwards are expected to be available to reduce taxable income. We have concluded based on the weight of negative evidence that a valuation allowance should be maintained against certain deferred tax assets that we do not expect to utilize as of October 3, 2015.
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