Income Taxes

6 Months Ended

Jun. 28, 2024

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12. INCOME TAXES

For the second quarter, our effective income tax rate was 25.3%, as compared to 22.4% in the corresponding period in 2023. For the first two quarters, our effective income tax rate was 25.1%, as compared to 20.5% in the prior year. The increases were primarily due to a geographic mix of gains from the Ag divestiture.

Unrecognized tax benefits of $59.4 million and $59.5 million at the end of the second quarter of 2024 and at the end of 2023, if recognized, would favorably affect the effective income tax rate in future periods. At the end of the second quarter of 2024 and at the end of 2023, we accrued interest and penalties of $11.9 million and $9.9 million.