INCOME TAXES

6 Months Ended

Jul. 03, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended July 3, 2021 was 19.1% versus 22.5% for the three months ended June 27, 2020. The effective tax rate for the six months ended July 3, 2021 and June 27, 2020 was 21.0% and 22.8%, respectively. The change in the effective tax rate for the three and six months ended July 3, 2021 was primarily driven by the mix of earnings.

As of July 3, 2021 and January 2, 2021, the Company had approximately $9.3 million and $6.8 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. The Company had approximately $2.9 million and $2.7 million of accrued interest as of July 3, 2021 and January 2, 2021, respectively.

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 2015, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2013.