Income Taxes

6 Months Ended

Jul. 04, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended July 4, 2026, the Company recorded income tax expense of $52.3 million on earnings before income taxes of $248.5 million for an effective tax rate of 21.0%. 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%. The increase in the effective tax rate was primarily attributable to the Company’s geographic dispersion of profits and losses for the respective periods and a non-recurring benefit recorded during the three months ended June 28, 2025, related to a prior period Italian tax benefit. These unfavorable impacts were partially offset by a smaller increase in unrecognized tax benefits during the three months ended July 4, 2026.

For the six months ended July 4, 2026, the Company recorded income tax expense of $43.4 million on earnings before income taxes of $356.7 million for an effective tax rate of 12.2%. 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%. The decrease in the effective tax rate was primarily attributable to a smaller increase in unrecognized tax benefits during the three months ended July 4, 2026, and tax benefits recognized during the six months ended July 4, 2026, including (i) a one-time tax benefit associated with a legal entity restructuring initiative, (ii) tax credits issued by the Brazilian government related to prior years, and (iii) a foreign tax credit benefit recorded in connection with a U.S. amended return. These favorable impacts were partially offset by the Company’s geographic dispersion of profits and losses for the respective periods.