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INCOME TAXES
6 Months Ended
Jun. 27, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The effective tax rate for the three months ended June 27, 2020 was 22.5% versus 19.6% for the three months ended June 29, 2019. The effective tax rate for the six months ended June 27, 2020 was 22.8% versus 19.6% for the six months ended June 29, 2019. The change in the effective tax rate for the three and six months ended June 27, 2020 was primarily driven by the 2019 expiration of the China Hi-Technology incentives and the mix of earnings. The Company is in the process of renewing these incentives and the impact will be recorded once approval is received.
On March 27, 2020, the CARES Act (the "Act") was enacted in response to the COVID-19 pandemic, and among other things, provides tax relief to businesses. The Act includes provisions relating to net operating loss carrybacks, modification to the net interest deduction limitations, deferral of certain payroll taxes, relief for retaining employees, and other provisions. The Company is evaluating the impact of the Act and currently expects to benefit from the deferral of certain payroll taxes and relief for retaining employees.
As of June 27, 2020 and December 28, 2019, the Company had approximately $6.9 million 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.