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INCOME TAXES
 9 Months Ended
Sep. 27, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company’s effective tax rates for the three months ended September 27, 2025 and September 28, 2024 were 36.3% and 23.0%, respectively. The Company’s effective tax rates for the nine months ended September 27, 2025 and September 28, 2024 were 31.1% and 22.9%, respectively. The increase in the effective tax rate for the three and nine months ended September 27, 2025 compared to the corresponding prior year periods were primarily attributable to an increase in net U.S. taxation of foreign operations, as well as the current and deferred impact of tax legislation enacted in the period in a foreign jurisdiction.
For the three months ended September 27, 2025, the Company’s unrecognized tax benefits increased by $0.2 million to $29.4 million, primarily due to increases in research and development tax credit reserves, offset by favorable foreign exchange movement. For the three months ended September 27, 2025, the amount of unrecognized income tax benefits that would impact the effective tax rate increased by $0.8 million to $25.0 million for the same reasons discussed above. The accrued interest on unrecognized tax benefits was $2.6 million as of September 27, 2025. The Company estimates that it is reasonably possible that the unrecognized tax benefits will decrease by approximately $7.5 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:
September 27, 2025December 28, 2024Affected Line Item in the Unaudited Condensed Consolidated Balance Sheets
(in thousands)
Prepaid income tax$157,954 $82,995 Other current assets
Accrued income taxes55,368 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 has analyzed the impacts of the OBBBA and reflected them in the current period. The enactment of the OBBBA did not have a material impact to the tax rate for the three and nine months ended September 27, 2025.
The Company and certain of its subsidiaries have ongoing tax controversies in the U.S., Canada, France, Ireland, the U.K., and India. The Company does not anticipate resolution of these audits will have a material impact on its unaudited condensed consolidated financial statements.