INCOME TAXES

3 Months Ended

Apr. 03, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense was $8.4 million and $2.7 million for the three months ended April 3, 2021 and March 28, 2020, respectively. The increase in income tax expense is due to higher income before income taxes. The effective tax rate for the three months ended April 3, 2021 was 22%, compared to 24% for the three months ended March 28, 2020. The impact of a discrete tax benefit related to stock compensation resulted in a lower effective tax rate for the three months ended April 3, 2021.

Deferred tax liabilities were $9.7 million as of April 3, 2021 and $5.2 million as of January 2, 2021, respectively, which is presented in other liabilities on our unaudited condensed consolidated balance sheet.

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.