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Income Taxes
3 Months Ended
Jan. 02, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense for the three months ended January 2, 2021 was $5.4 million compared to $3.3 million for the three months ended January 4, 2020.
The effective tax rates for the three months ended January 2, 2021 and January 4, 2020 were 13.1% and 9.5%, respectively. The effective tax rate for the three months ended January 2, 2021 increased from the effective tax rate for the three months ended January 4, 2020, primarily due to a net $0.8 million benefit for special tax items during the three months ended January 4, 2020, as well as a change in the geographic distribution of pre-tax book income. The net $0.8 million benefit for special tax items for the three months ended January 4, 2020 was comprised of a $1.9 million benefit related to guidance issued by the U.S. Department of Treasury regarding foreign tax credits, partially offset by $1.1 million of expense for special tax items.
The U.S. Department of Treasury issued final regulations during the quarter that allow tax accounting method changes pertaining to advance payments from customers and revenue recognition. Although the Company does not currently intend to adopt these changes, the Company will continue to assess the potential impact of these regulations as further guidance regarding implementation is issued.
There were no material additions to the amount of unrecognized tax benefits recorded for uncertain tax positions as of January 2, 2021. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three months ended January 2, 2021 was not material.
One or more uncertain tax positions may be settled within the next 12 months. Settlement of these matters is not expected to have a material effect on the Company's consolidated results of operations, financial position and cash flows. The Company is not currently under examination by taxing authorities in the U.S. The Company is under audit in various foreign jurisdictions but settlement is not expected to have a material impact.
The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended January 2, 2021, the Company continued to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the EMEA segment and a partial valuation against its net deferred tax assets in certain jurisdictions within the AMER segment, as it was more likely than not that these assets would not be fully realized based primarily on historical performance. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until it determines it is more likely than not that the deferred tax assets will be realized.