INCOME TAXES

3 Months Ended

Apr. 01, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company recognized income tax expense on continuing operations of $23.7 million for the three months ended April 1, 2023, resulting in an effective tax rate of (14.4)%. This effective tax rate differs from the U.S. statutory tax rate primarily due to U.S. tax on foreign earnings, non-deductible expenses and interest on unrecognized tax benefits, partially offset by tax on foreign earnings at tax rates different than the U.S. tax rate and benefits associated with state income taxes and tax credits. The Company recognized income tax expense of $22.9 million for the three months ended April 2, 2022, resulting in an effective tax rate of 12.8%. This effective tax rate differs from the U.S. statutory tax rate primarily due to a benefit associated with the Company's supply chain reorganization, tax on foreign earnings, and the re-measurement of uncertain tax position reserves.

The Company considers many factors when evaluating and estimating its tax positions and the impact on income tax expense, which may require periodic adjustments, and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. However, based on the uncertainties associated with finalizing audits with the relevant tax authorities including formal legal proceedings, it is not possible to reasonably estimate the impact of any such change.