INCOME TAXES

3 Months Ended

Mar. 28, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense was $2.7 million and $0.6 million for the three months ended March 28, 2020 and March 30, 2019, respectively. The increase in income tax expense is due to higher income before income taxes. The effective tax rate for the three months ended March 28, 2020 was 24%, compared to 22% for the three months ended March 30, 2019. The impact of a discrete income tax benefit on lower income before income taxes resulted in a lower effective tax rate for the three months ended March 30, 2019.

For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions, and other items.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. We continue to examine the impacts the CARES Act may have on our business, but we currently do not expect the impact to be material.