Income Taxes	9 Months Ended
Sep. 27, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 7. Income Taxes The income tax provision for the three and nine months ended September 27, 2020 was $6.2 million, or an effective tax rate of 19.6%, and $10.0 million, or an effective tax rate of 26.7%, respectively. The income tax provision (benefit) for the three and nine months ended September 29, 2019, was $(0.2) million, or an effective tax rate of (1.9)%, and $2.7 million, or an effective tax rate of 9.4%, respectively. The increase in tax expense for the three months ended September 27, 2020, compared to the prior year period, was due primarily to higher pre-tax earnings coupled with the negative impact of limitations on current and future stock-based compensation deductions for certain executive officers under IRC section 162(m). These adverse impacts were partially offset by favorable changes in estimates recorded during the third fiscal quarter upon filing the 2019 U.S. federal tax return. The increase in tax expense for the nine months ended in September 27, 2020, compared to the prior year period, results primarily from an increase in valuation allowance on deferred tax assets from investment impairments where the deferred tax benefit is not considered more likely than not, as well as the impact of limitations on current and future stock-based compensation deductions for certain executive officers under IRC section 162(m). These adverse impacts were partially offset by favorable changes in estimates recorded during the third fiscal quarter upon filing of the Company’s 2019 U.S. federal tax return. Favorable adjustments recorded in the nine months ended September 29, 2019 included tax benefits from the settlement of tax audits. The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. The future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. The Company is under examination in various U.S. and foreign jurisdictions. The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions in multiple jurisdictions in the next twelve months is approximately $0.5 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. The Company is currently under examination by the Internal Revenue Service for its fiscal year ended December 31, 2018. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law in response to the COVID-19 pandemic. The CARES Act, among other provisions, includes provisions related to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating losses carryback periods, alternative minimum tax credit refunds, modification to net interest expense deduction limitation, and technical amendments to tax depreciation methods for qualified improvement property placed in service after December 31, 2017. The provisions of the CARES Act do not have a material impact on income taxes or liquidity.

Income Taxes

9 Months Ended

Sep. 27, 2020

Note 7. Income Taxes

The income tax provision for the three and nine months ended September 27, 2020 was $6.2 million, or an effective tax rate of 19.6%, and $10.0 million, or an effective tax rate of 26.7%, respectively. The income tax provision (benefit) for the three and nine months ended September 29, 2019, was $(0.2) million, or an effective tax rate of (1.9)%, and $2.7 million, or an effective tax rate of 9.4%, respectively. The increase in tax expense for the three months ended September 27, 2020, compared to the prior year period, was due primarily to higher pre-tax earnings coupled with the negative impact of limitations on current and future stock-based compensation deductions for certain executive officers under IRC section 162(m). These adverse impacts were partially offset by favorable changes in estimates recorded during the third fiscal quarter upon filing the 2019 U.S. federal tax return. The increase in tax expense for the nine months ended in September 27, 2020, compared to the prior year period, results primarily from an increase in valuation allowance on deferred tax assets from investment impairments where the deferred tax benefit is not considered more likely than not, as well as the impact of limitations on current and future stock-based compensation deductions for certain executive officers under IRC section 162(m). These adverse impacts were partially offset by favorable changes in estimates recorded during the third fiscal quarter upon filing of the Company’s 2019 U.S. federal tax return. Favorable adjustments recorded in the nine months ended September 29, 2019 included tax benefits from the settlement of tax audits.

The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions. The future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. The Company is under examination in various U.S. and foreign jurisdictions.

The Company files income tax returns in the U.S. federal jurisdiction as well as various state, local, and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions in multiple jurisdictions in the next twelve months is approximately $0.5 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. The Company is currently under examination by the Internal Revenue Service for its fiscal year ended December 31, 2018.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law in response to the COVID-19 pandemic. The CARES Act, among other provisions, includes provisions related to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating losses carryback periods, alternative minimum tax credit refunds, modification to net interest expense deduction limitation, and technical amendments

to tax depreciation methods for qualified improvement property placed in service after December 31, 2017. The provisions of the CARES Act do not have a material impact on income taxes or liquidity.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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