Income Taxes

6 Months Ended

Jul. 03, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income TaxesThe Company’s effective tax rate for the three months ended July 3, 2022 and July 4, 2021 was 26.4% and 18.6%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the three months ended July 3, 2022 primarily due to state income taxes.

The Company’s effective tax rate for the six months ended July 3, 2022 and July 4, 2021 was 26.4% and 20.8%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the six months ended July 3, 2022 primarily due to state income taxes.

There were no significant changes to the unrecognized tax benefits or related interest and penalties for the three and six months ended July 3, 2022. During the next twelve months, we believe it is reasonably possible the Company will reduce unrecognized tax benefits by up to $936 due to lapses of statutes of limitations.

The current portion of refundable income taxes was $8,266 and $11,901 as of July 3, 2022 and January 2, 2022, respectively, and is included in “Accounts and notes receivable, net.” There were no long-term refundable income taxes as of July 3, 2022 and January 2, 2022.