Income Taxes

9 Months Ended

Sep. 27, 2024

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12. INCOME TAXES

For the third quarter, our effective income tax rate was 44.5%, as compared to 5.7% in the corresponding period in 2023, primarily due to certain disallowed losses related to the pending Mobility divestiture. For the first three quarters, our effective income tax rate was 25.9%, as compared to 16.5% in the prior year, primarily due to a geographic mix of gains from the Ag divestiture.

Unrecognized tax benefits of $59.9 million and $59.5 million at the end of the third 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 third quarter of 2024 and at the end of 2023, we accrued interest and penalties of $12.4 million and $9.9 million.