INCOME TAXES

9 Months Ended

Oct. 01, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense was $14.2 million and $13.7 million for the three months ended October 1, 2022 and October 2, 2021, respectively. The effective tax rate for the three months ended October 1, 2022 was 24%, compared to 21% for the three months ended October 2, 2021. The increase in both the income tax expense and the effective tax rate are primarily due to a lower tax benefit related to stock compensation in the three months ended October 1, 2022.

Income tax expense was $37.2 million and $36.5 million for the nine months ended October 1, 2022 and October 2, 2021, respectively. The effective tax rate for the nine months ended October 1, 2022 was 24%, compared to 21% for the nine months ended October 2, 2021. The increase in both the income tax expense and the effective tax rate are primarily due to a lower tax benefit related to stock compensation in the nine months ended October 1, 2022.

Deferred tax liabilities were $9.7 million as of October 1, 2022 and $10.9 million as of January 1, 2022, 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.