CTS Corporation Reconciliation of Annual Effective Tax Rate to Annual Adjusted Tax Rate ($ in thousands) Pre-tax (loss)/earnings $ 2010 28,026 $ 2009 (20,414) $ Tax expense/(benefit) $ 5,988 $ 13,636 Effective tax rate Pre-tax (loss) Add: Restructuring and restructuring-related charges Goodwill impairment charges Adjusted Pre-tax (loss) Tax expense/(benefit) Subtract: Tax expense related to goodwill impairment charges Tax expense related to restructuring and restructuring-related charges Tax expense related to increase in valuation allowance Tax benefit related to change in Canada tax law Tax benefit related to release of valuation allowance Tax expense related to cash repatriation Adjusted tax expense/(benefit) Adjusted tax rate 21.4% -66.8% $ 28,026 $ $ $ $ 1,697 29,723 $ 5,988 $ 589 6,577 22.1% $ 2008 26,255 (1,807) -6.9% (20,414) $ $ 2,243 33,153 14,982 $ 6,085 32,340 $ 13,636 $ (1,807) $ 205 673 (2,500) (9,077) 2,937 $ 19.6% $ 26,255 2,190 1,355 4,148 5,886 18.2%