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Income Taxes
9 Months Ended
Oct. 02, 2020
Income Tax Disclosure [Abstract]  
Income Taxes
Note Q — Income Taxes
Our effective tax rate (income taxes as a percentage of income from continuing operations before income taxes) was 16.8 percent in the quarter ended October 2, 2020 compared with 1.1 percent in the quarter ended September 27, 2019. In the quarter ended October 2, 2020, our effective tax rate benefited from favorable adjustments upon the finalization of our Federal tax returns including the benefit of recently released tax regulations and the resolution of audit uncertainties. In the quarter ended September 27, 2019, our effective tax rate benefited from the favorable impact of excess tax benefits related to equity-based compensation, from the ability to utilize capital loss carryforwards with a full valuation allowance against capital gains generated from the Harris Night Vision business divestiture, and from the release of uncertain tax positions due to statute of limitations expirations.
Our effective tax rate was 15.9 percent in the three quarters ended October 2, 2020 compared with 7.6 percent in the three quarters ended September 27, 2019. In addition to the items noted above for the quarter ended October 2, 2020, our effective tax rate for the three quarters ended October 2, 2020 benefited from the favorable impact of research and development credits, the favorable impact of excess tax benefits related to equity-based compensation, partially offset by the unfavorable impact of non-deductible goodwill impairment charges. In addition to the items noted above for the quarter ended September 27, 2019, our effective tax rate for the three quarters ended September 27, 2019 benefited from additional research credits claimed on our prior year tax returns and favorable adjustments recorded upon the filing of our Federal tax returns.