Income Taxes

9 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

For the three months ended December 31, 2022 and January 1, 2022, the Company recorded $24.9 million and $23.3 million of income tax expense and had an effective tax rate of 23.1% and 25.6%, respectively. For the nine months ended December 31, 2022 and January 1, 2022, the Company recorded $113.4 million and $53.7 million of income tax expense and had an effective tax rate of 24.8% and 25.0%, respectively.

The Company’s effective tax rate for the three and nine months ended December 31, 2022 differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions. The Company’s effective tax rate for the three and nine months ended January 1, 2022 differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, results in foreign jurisdictions, and tax benefits from vested equity compensation.

At December 31, 2022, the Company had no unrecognized tax benefits. The Company does not anticipate any material changes to uncertain tax benefits in the next 12 months. The Company records interest and penalties related to unrecognized tax benefits as a component of income tax expense.