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Income Taxes
9 Months Ended
Sep. 27, 2020
Income Taxes [Abstract]  
Income Taxes
Note 6.  Income Taxes


Provision for taxes was $7.0 million and $17.6 million during the three and nine-month periods ended September 27, 2020, respectively.  The effective tax rate was 19.6% for the three months ended September 27, 2020 as compared with 6.4% in the prior year.  For the nine months ended September 27, 2020, the effective tax rate was 17.7% as compared with 13.9% in the prior year. The higher effective tax rate was primarily due to tax benefits in the prior year resulting from the expiration of the statute of limitations.


As of September 27, 2020, the Company had approximately $8.4 million of total unrecognized income tax benefits. Included in this amount were a total of $5.6 million of unrecognized income tax benefits that, if recognized, would affect the Company’s effective tax rate.  While it is expected that the amount of unrecognized tax benefits will change in the next 12 months, the Company does not expect the change to have a significant impact on the results of operations or the financial position of the Company.


The Company’s accounting policy is to recognize interest and penalties accrued relating to unrecognized income tax benefits as part of its provision for income taxes.  The Company had a net increase of approximately $0.1 million and $0.3 million during the three and nine-months ended September 27, 2020  and an accrued balance of $2.3 million of interest and penalties as of September 27, 2020.


The Company operates in multiple taxing jurisdictions, both within and outside the U.S.  In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings.  The Company, with a few exceptions (none of which are material), is no longer subject to income tax examinations by tax authorities for years prior to 2010.