INCOME TAXES

9 Months Ended

Sep. 28, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended September 28, 2019 was 16.3% versus 6.4% for the three months ended September 29, 2018. The effective tax rate for the nine months ended September 28, 2019 was 18.8% versus 17.3% for the nine months ended September 29, 2018. The change in the effective tax rate for the three months ended September 28, 2019 was primarily driven by the finalization of the 2017 Transition Tax as required by the Tax Cuts and Jobs Act of 2017 and the mix of earnings. The change in the effective tax rate for the nine months ended September 28, 2019 was primarily driven by the divestiture of businesses and the mix of earnings.

As of September 28, 2019 and December 29, 2018, the Company had approximately $9.2 million and $6.5 million, respectively, of unrecognized tax benefits, all of which would impact the effective income tax rate if recognized. Potential interest and penalties related to unrecognized tax benefits are recorded in income tax expense.

With few exceptions, the Company is no longer subject to US Federal and state/local income tax examinations by tax authorities for years prior to 2014, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2012.