INCOME TAXES

3 Months Ended

Apr. 01, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense was $3.9 million and $7.8 million for the three months ended April 1, 2023 and April 2, 2022, respectively. The decrease in income tax expense was due to lower income before income taxes. The effective tax rate for the three months ended April 1, 2023 was 27%, compared to 23% for the three months ended April 2, 2022. The higher effective tax rate was primarily due to an unfavorable tax impact related to stock compensation in the three months ended April 1, 2023.

Deferred tax assets were $16.4 million as of April 1, 2023 and $23.2 million as of December 31, 2022, which is presented in other assets 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.