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Income Taxes
9 Months Ended
Sep. 28, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective tax rates for the third quarter and year-to-date periods of 2019 were 44.2 percent and 33.9 percent, respectively, compared with 31.6 percent and 32.1 percent for the comparable 2018 periods. The tax rate for the second quarter of 2019 was 36.2 percent. The increase in the rate from the second quarter to the third quarter of 2019, was the result of a 2018 tax return to provision true-up related to the Tax Cuts and Jobs Act of 2017 ("Tax Act") and the impairment charges primarily related to Fuller Mexico's goodwill.
As of September 28, 2019 and December 29, 2018, the Company's accrual for uncertain tax positions was $11.8 million and $15.1 million, respectively. The decrease in the accrual for uncertain tax positions was primarily due to the settlement of audits in various jurisdictions. The Company estimates that as of September 28, 2019, approximately $11.5 million of the unrecognized tax benefits, if recognized, will impact the effective tax rate. Interest and penalties related to uncertain tax positions in the Company's global operations are recorded as a component of the provision for income taxes. Accrued interest and penalties were $5.1 million and $5.5 million as of the periods ended September 28, 2019 and December 29, 2018, respectively.
The Company estimates that it may settle one or more audits in the next twelve months that may result in cash payments decreasing the amount of accrual for uncertain tax positions by up to $0.4 million. For the remaining balance as of September 28, 2019, the Company is not able to reliably estimate the timing or ultimate settlement amount. While the Company does not currently expect material changes, it is possible that the amount of unrecognized benefit with respect to the uncertain tax positions will significantly increase or decrease related to audits in various foreign jurisdictions that may conclude during that period or new developments that could also, in turn, impact the Company's assessment relative to the establishment or reversal of valuation allowances against certain existing deferred tax assets. These valuation allowances relate to tax assets in jurisdictions where it is management's best estimate that there is not a greater than 50 percent probability that the benefit of the assets will be realized in the associated tax returns. The likelihood of realizing the benefit of deferred tax assets is assessed on an ongoing basis. This assessment requires estimates as to future operating results, as well as an evaluation of the effectiveness of the Company's tax planning strategies. At this time, the Company is not able to make a reasonable estimate of the range of impact on the balance of unrecognized tax benefits or the impact on the effective tax rate related to these items.