Reg G Q3 2012_10 24 12_1 pm_20 cents SP

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%