Income Taxes

9 Months Ended

Oct. 01, 2021

INCOME TAXES


	For the Three Months Ended				For the Nine Months Ended
	October 1, 2021		October 2, 2020		October 1, 2021		October 2, 2020

Effective Income Tax Rate from continuing operations	23.3	%	(1.8)	%	22.7	%	2.6	%

The effective income tax rate represents the combined federal, state and foreign tax effects attributable to pretax earnings from continuing operations for the period. The comparison of the effective tax rate from continuing operations for the three-month and nine-month fiscal periods ended October 1, 2021 to the corresponding rates in the prior year was impacted by the pretax income in the current period versus pretax loss in the prior period. Due to the prior period pretax loss, the relatively low rate represents a tax expense and was primarily caused by the requirement to treat the tax impact from the goodwill impairment as a discrete item in the prior period. Additionally, the effective tax rate in the current period was impacted by a discrete charge to record a valuation allowance on deferred tax assets for one of the Company's foreign subsidiaries. This charge was partially offset by incremental research and development credit benefits.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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