Income Taxes |
6 Months Ended |
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Jul. 02, 2021 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | INCOME TAXES Effective Tax Rate Income tax expense during interim periods is based on an estimated annual effective income tax rate, plus any significant unusual or infrequently occurring items recorded in interim periods. The computation of the estimated effective income tax rate at each interim period requires certain estimates and judgment including, but not limited to, forecasted operating income for the year, projections of the income earned and taxed in various jurisdictions, newly enacted tax rate and legislative changes, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year. For the three months ended July 2, 2021 and July 3, 2020, we recorded an income tax provision of $4.4 million and an income tax benefit of less than $0.1 million, representing effective income tax rates of 21.6% and (2.5)%, respectively. For the six months ended July 2, 2021 and July 3, 2020, we recorded income tax provisions of $6.9 million and $2.1 million, representing effective income tax rates of 19.9% and 17.6%, respectively. The effective income tax rates vary from the federal statutory rate of 21.0% due to state and foreign taxes, required tax income exclusions, nondeductible expenses and available deductions not reflected in book income. Uncertain Tax Provisions As of July 2, 2021, and December 31, 2020, unrecognized tax benefits from uncertain tax positions were $8.6 million and $7.4 million, respectively. The increase in the uncertain tax positions was principally the result of the additional Foreign Derived Intangible Income (FDII) deduction as the Company reserves a portion of the FDII benefit claimed or expected to be claimed on its income tax return filings.
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