INCOME TAXES

6 Months Ended

Jul. 02, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 8 — INCOME TAXES

The Company's 2022 and 2021 effective tax rates differ from the statutory federal tax rate due principally to state income taxes and the nondeductibility of certain executive compensation. The Company’s effective income tax rate was 20.5% and 22.3% for the three and six months ended July 2, 2022, respectively. The Company’s effective income tax rate was 26.4% and 26.7% for the three and six months ended July 3, 2021, respectively. The decrease in the effective tax rates was primarily attributable to research and development tax credits.

Income tax payments for the three and six months ended July 2, 2022 totaled $17.6 million and $20.7 million, respectively. Income tax payments for the three and six months ended July 3, 2021 totaled $22.6 and $22.8 million, respectively.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2017.

The Company does not believe it has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material change to its financial position.