Income Taxes

9 Months Ended

Sep. 29, 2023

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company’s effective tax rates from continuing operations of 39.9% and 26.8% for the three and nine months ended September 29, 2023, respectively, differ from the U.S. federal statutory rate of 21.0% primarily due to the nondeductible nature of the convertible debt inducement expense for U.S. tax purposes, the Company’s geographical mix of earnings, and discrete tax items.

The Company’s effective tax rates from continuing operations of 21.5% and 21.0% for the three and nine months ended September 30, 2022, respectively, differ from the U.S. federal statutory rate of 21.0% primarily due to the Company’s geographical mix of earnings and discrete tax items.

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implemented a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases, and several tax incentives to promote clean energy. Based on the Company’s current analysis of the provisions, this legislation did not have a material impact on its Condensed Consolidated Financial Statements as of or for the three and nine months ended September 29, 2023.