INCOME TAXES

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate for the three months ended March 31, 2022 was 22.2% versus 23.3% for the three months ended April 3, 2021. The effective tax rate for the three months ended March 31, 2022 was lower than the same period in the prior year due to additional tax reserves in the three months ended April 3, 2021 for the repatriation of foreign earnings. The reduction in the effective rate for the three months ended March 31, 2022 was partially offset by the impacts of the Rexnord Transaction in fiscal 2021.

As of March 31, 2022 and January 1, 2022, the Company had approximately $9.1 million and $8.8 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 $1.4 million and $1.3 million of accrued interest as of March 31, 2022 and January 1, 2022, 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 2018, and the Company is no longer subject to non-US income tax examinations by tax authorities for years prior to 2015.