Income Tax

6 Months Ended

Jun. 28, 2024

Income Tax Disclosure [Abstract]

Income Tax

INCOME TAX

The Company's effective tax rate was 28.3% and 8300.0% for the three months ended June 28, 2024 and June 30, 2023, respectively, and 56.4% and 295.0% for the six months ended June 28, 2024 and June 30, 2023, respectively. The Company’s income tax provision was $8.5 million and $8.3 million for the three months ended June 28, 2024 and June 30, 2023, respectively, and $18.4 million and $11.8 million for the six months ended June 28, 2024 and June 30, 2023, respectively. The change in respective tax 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 valuation allowances on deferred tax assets. Company management continuously evaluates the need for a valuation allowance and, as of June 28, 2024, concluded that a full valuation allowance on its U.S. federal and state and certain of its foreign deferred tax assets was still appropriate.

During the three months ended June 28, 2024, the Company received final approval for the renewal of a reduced tax rate incentive on qualified earnings of one of the Company's subsidiaries in Singapore, effective beginning of the Company's 2024 fiscal year through December 31, 2028. The reduced tax rate on the qualifying income was reflected in the effective tax rate and income tax provision for the three and six months ended June 28, 2024 and June 30, 2023.

As of June 28, 2024 and June 30, 2023, the Company’s gross liability for unrecognized tax benefits, excluding interest, was $3.1 million and $2.7 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.