Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company’s effective tax rate for the three and six months ended June 30, 2023 was 25.3% and 24.7%, respectively, as compared to 19.2% and 21.0% for the three and six months ended July 1, 2022. The increase in the effective tax rate for the three months ended June 30, 2023 as compared to the comparable period in the prior year was primarily due to an increase in foreign taxable earnings and taxes on the gain from the sale of a business. The increase in the effective tax rate for the six months ended June 30, 2023 as compared to the comparable period in the prior year was primarily due to an increase in foreign taxable earnings, taxes on the gain from the sale of a business and non-taxable income related to our previously held equity interest in Driivz in the prior year.

The Company’s effective tax rate for the three and six months ended June 30, 2023 differs from the U.S. federal statutory rate of 21% primarily due to the effect of state taxes and foreign taxable earnings at a rate different from the U.S. federal statutory rate. The Company’s effective tax rate for the three and six months ended July 1, 2022 differs from the U.S. federal statutory rate of 21% primarily due to the effect of state taxes and foreign taxable earnings at a rate different from the U.S. federal statutory rate, which was offset by non-taxable income related to our previously held equity interest in Driivz.