INCOME TAXES

9 Months Ended

Oct. 02, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended October 2, 2021 was 20.0% versus 20.5% for the three months ended September 26, 2020. The effective tax rate for the nine months ended October 2, 2021 and September 26, 2020 was 20.7% and 21.7%, respectively. The change in the effective tax rate for the three and nine months ended October 2, 2021 was primarily driven by the mix of earnings.

As of October 2, 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 $3.0 million and $2.7 million of accrued interest as of October 2, 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.