Income Taxes

6 Months Ended

Jun. 28, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended June 28, 2025, the Company recorded income tax expense of $34.0 million on earnings before income taxes of $180.5 million for an effective tax rate of 18.8%. For the three months ended June 29, 2024, the Company recorded income tax expense of $42.3 million on earnings before income taxes of $199.8 million, for an effective tax rate of 21.2%. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and a prior period tax benefit granted during the three months ended June 28, 2025, partially offset by a larger increase in unrecognized tax benefits during the three months ended June 28, 2025.

For the six months ended June 28, 2025, the Company recorded income tax expense of $51.5 million on earnings before income taxes of $270.5 million for an effective tax rate of 19.0%, as compared to income tax expense of $70.1 million on earnings before income taxes of $332.6 million, for an effective tax rate of 21.1% for the six months ended June 29, 2024. The decrease in the effective tax rate was primarily driven by the Company’s geographic dispersion of profits and losses for the respective periods and a tax benefit related to a prior period adjustment to deferred taxes during the six months ended June 28, 2025, partially offset by a larger increase in unrecognized tax benefits during the six months ended June 28, 2025.

On July 4, 2025, the One Big Beautiful Bill Act was enacted in the U.S. The bill contained multiple corporate tax provisions, the impact of which the Company is in the process of evaluating.