Income Taxes (Notes)

6 Months Ended

Jun. 27, 2020

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The Company’s effective income tax rate for the three months ended June 27, 2020 and June 29, 2019, was 16.1% and (6.3)%, respectively. The increase in the effective income tax rate was primarily due to lower tax benefits recognized related to stock-based compensation. During the three months ended June 29, 2019, the Company’s effective income tax rate included the recognition of a discrete tax benefit upon the effective settlement of a foreign tax audit.

The Company's effective income tax rate of 16.1% for the three months ended June 27, 2020 differed from the federal statutory tax rate of 21% primarily due to the discrete recognition of foreign tax credits and other tax benefits made possible by the income from the tariff refunds recognized during the quarter.

The Company’s effective income tax rate for the six months ended June 27, 2020 and June 29, 2019, was 18.5% and 2.0%, respectively. The increase in the effective income tax rate was primarily due to the recognition of tax expense associated with stock-based compensation compared to a tax benefit for the prior period.

The Company's effective income tax rate of 18.5% for the six months ended June 27, 2020 differed from the federal statutory tax rate of 21% primarily due to the discrete recognition of foreign tax credits and other tax benefits made possible by the income from the tariff refunds recognized during the period. The impact of these benefits was offset by discrete tax expense associated with stock-based compensation.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the COVID-19 pandemic. The Company continues to evaluate the impact of the CARES Act, but at present does not expect the CARES Act to result in any material income tax benefit.