Income Taxes

9 Months Ended

Sep. 25, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate for the three and nine months ended September 25, 2021 was 19.0% and 17.6%, respectively, compared to the effective tax rate for the three and nine months ended September 26, 2020 of 17.9% and 23.1%, respectively. The effective tax rate for the third quarter of 2021 is higher than the effective tax rate for the comparable 2020 period, primarily due to a reduction during the third quarter of 2020 in the estimated 2020 annual effective tax rate, the impact of which was recorded during the third quarter of 2020.

The effective tax rate for the first nine months of 2021 is lower than the effective tax rate for the comparable 2020 period, primarily due to an increase in the forecasted income earned in lower tax jurisdictions in 2021 as compared to 2020, as well as the impact of the goodwill impairment charge of $33.8 million recorded in the second quarter of 2020, the substantial majority of which did not result in a tax benefit in the annual estimated effective tax rate. The effective tax rate for the 2021 period is lower than the applicable U.S. statutory tax rate primarily due to income earned in lower tax jurisdictions.