Income Tax

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Tax

. INCOME TAX

The Company's effective tax rate was 21.6% and 21.5% for the three months ended April 1, 2022 and March 26, 2021, respectively. The Company’s income tax provision was $8.5 million and $7.0 million for the three months ended April 1, 2022 and March 26, 2021, respectively. The change in respective rates reflects, primarily, changes in the geographic mix of worldwide earnings and financial results in jurisdictions which are taxed at different rates and the impact of losses in jurisdictions with full federal and state valuation allowances.

Company management continuously evaluates the need for a valuation allowance and, as of April 1, 2022, concluded that a full valuation allowance on its U.S. federal and state and certain of its foreign deferred tax assets was still appropriate.

As of April 1, 2022 and March 26, 2021, the Company’s gross liability for unrecognized tax benefits, excluding interest, was $1.7 million and $1.0 million, respectively. Increases or decreases to interest and penalties on uncertain tax positions are included in the

income tax provision in the Condensed Consolidated Statements of Operations. Although it is possible that some of the unrecognized tax benefits could be settled within the next twelve months, the Company cannot reasonably estimate the outcome at this time.