Income Taxes

3 Months Ended

Mar. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was $9.5 million on pre-tax income of $28.2 million for the three months ended March 30, 2024, as compared to income tax expense of $0.3 million on pre-tax income of $3.5 million in the comparable prior year period. The effective income tax rate for the three months ended March 30, 2024 was 33.7% compared to 8.6% in the comparable prior year period.

The effective tax rate for the three months ended March 30, 2024 varied from the effective tax rate in the comparable prior year period due primarily to increased income in taxable jurisdictions and foreign exchange gains incurred in the first quarter of 2023 in tax jurisdictions for which no tax expense was recognized due to existing valuation allowances.

The effective tax rate for the three months ended March 30, 2024 varied from applicable statutory tax rates due primarily to losses in tax jurisdictions for which no tax benefit is recognized due to existing valuation allowances and income in tax jurisdictions with tax rates lower than the Canadian statutory tax rate.