I think what we have said is, for the full-year, we expect it to be neutral at current volumes. So, I think that as we head into the second half of the year, the real thing that we need to have happened is the continued strong business demand. And that’s — right now, it appears to be the case. If there’s a tick up or a tick down in our factory volumes, then cost could be not as big of an issue if it ticks up or it could be more of an issue if volumes tick down. And then Kathy and David are here as well and they’re welcome to join in. We are realizing price gain, I would say, more or less in line with what we had expected to realize when we put our price increases through.
The graco travel system 4Ever 4-in-1’s cushions are made with plush fabric that doesn’t scratch delicate skin. It also has a special harness system , plus six-position reclining and a 10-position headrest. The harness is easy to use and makes us feel confident that our kids are safely buckled.
As Kathy mentioned, I think in her opening comments, we have seen the impacts of the higher costs coming into the factory now that maybe we didn’t see quite so much of in late last year and early this year. But as we roll forward our forecasts and we kind of look at how we think the year is going to play out, we feel pretty good about where things are lined up. Operating expenses increased $27 million or 26% in the quarter. Sales and volume-based expenses increased $18 million against a very low comparable in the prior year. New product development and currency translation rates each increased operating expenses by $3 million.
So, I would speculate that some of that is happening, but we haven’t been able to quantify it. I think we’re experiencing really the same things that all other industrial companies are experiencing. We haven’t really seen anything with respect to graco travel system that’s too dissimilar from what we’re hearing from our competitors and what we’re picking up from the channel partners that we deal with around the globe. I would like to thank all of our employees, suppliers and distributor partners who continue to work long hours keeping up with customer demand while navigating logistical and supply chain challenges. Our full-year adjusted tax rate is expected to be approximately 18% to 19%.
Again, I don’t feel that it’s a meaningful driver for ‘s business. It’s one of many key markets that we participate in. Of course, we’re in like a lot of different end markets. And that business has been soft, as you might expect.
Fortunately, each side of the seat has a level indicator that shows is it’s in a safe position, whether it’s front- or rear-facing. The height of its 10-position headrest is also easy to adjust; we could do it with just one hand. The recalled Graco infant inclined sleepers can stand alone or attach to the top of a play yard. Head over GracoBaby.com to find the infant car seat model that best meets your needs or read up on whether an all-in-one car seat might actually do the trick instead.
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