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INCOME TAXES
 6 Months Ended
Jun. 28, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company’s effective tax rates for the three months ended June 28, 2025 and June 29, 2024 were 26.2% and 21.2%, respectively. The Company’s effective tax rates for the six months ended June 28, 2025 and June 29, 2024 were 26.8% and 22.8%, respectively. The increase in the effective tax rate for both the three and six months ended June 28, 2025 compared to the corresponding prior year periods were primarily attributable to the tax effects from stock-based compensation deductions, as well as non-taxable remeasurement gains on a previous equity investment in Noveprim during the three months ended June 29, 2024.
For the three months ended June 28, 2025, the Company’s unrecognized tax benefits increased by $1.9 million to $29.2 million, primarily due to increases in research and development tax credit reserves, as well as unfavorable foreign exchange movement. For the three months ended June 28, 2025, the amount of unrecognized income tax benefits that would impact the effective tax rate increased by $1.3 million to $24.2 million for the same reasons discussed above. The accrued interest on unrecognized tax benefits was $2.4 million as of June 28, 2025. The Company estimates that it is reasonably possible that the unrecognized tax benefits will decrease by approximately $8.3 million over the next twelve-month period, primarily due to audit settlements and expiring statutes of limitations.
The Company’s prepaid and accrued tax positions are as follows:
June 28, 2025December 28, 2024Affected Line Item in the Unaudited Condensed Consolidated Balance Sheets
(in thousands)
Prepaid income tax$119,955 $82,995 Other current assets
Accrued income taxes40,912 31,872 Other current liabilities
The Company conducts business in a number of tax jurisdictions. As a result, it is subject to tax audits on a regular basis including, but not limited to, such major jurisdictions as the U.S., the U.K., China, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2021.
On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act ("OBBBA"), which includes several changes to U.S. federal income tax law, including accelerated tax depreciation, expensing of research and development, and the U.S. international inclusions. The Company is assessing these impacts on its consolidated financial statements, but anticipates an impact to our deferred tax and cash tax positions relating to bonus depreciation and full expensing of domestic research and experimental expenditures. While the Company continues to assess the impact of the tax provisions of the OBBBA on its consolidated financial statements, the Company currently believes that the tax provisions of the legislation are not expected to have a material impact on the Company’s statement of operations.
The Company and certain of its subsidiaries have ongoing tax controversies in the U.S., Canada, France, Ireland, and India. The Company does not anticipate resolution of these audits will have a material impact on its unaudited condensed consolidated financial statements.