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Income Taxes
 6 Months Ended
Jun. 27, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

7.

Income Taxes

 

The Company recorded income tax expense of $13,412 in the 13-week period ended June 27, 2020, compared to income tax expense of $52,122 in the 13-week period ended June 29, 2019. The effective tax rate was 6.8% in the second quarter of 2020, compared to 18.9% in the second quarter of 2019. Excluding a $14,308 income tax benefit recognized by the Company in the second quarter of 2020 due to the release of uncertain tax position reserves associated with a 2014 intercompany restructuring, the effective tax rate in the second quarter of 2020 decreased 490 basis points compared to the effective tax rate in the prior year quarter. The decrease was primarily due to a favorable shift in income mix by jurisdiction related to the transaction to migrate intellectual property ownership from Switzerland to the United States, which began in the first quarter of 2020. 

 

The Company recorded income tax expense of $29,866 in the first half of 2020, compared to income tax expense of $78,214 in the first half of 2019. The effective tax rate was 8.0% in the first half of 2020, compared to 17.7% in the first half of 2019. Excluding the $14,308 income tax benefit recognized by the Company in the second quarter of 2020 due to the release of uncertain tax position reserves associated with the 2014 intercompany restructuring, the effective tax rate in the first half of 2020 decreased 590 basis points compared to the effective tax rate in the first half of the prior year. The decrease was primarily due to a favorable shift in income mix by jurisdiction related to the transaction to migrate intellectual property ownership from Switzerland to the United States, which began in the first quarter of 2020.