Income Taxes

9 Months Ended

Sep. 26, 2020

The Corporation's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The following table summarizes the Corporation's income tax provision (dollars in thousands):


	Three Months Ended									Nine Months Ended
	September 26, 2020			September 28, 2019			September 26, 2020			September 28, 2019
Income before income taxes	$	37,245		$	58,451		$	24,605		$	80,786
Income taxes	$	6,558		$	12,375		$	5,259		$	17,878
Effective tax rate	17.6		%	21.2		%	21.4		%	22.1		%

The Corporation's effective tax rate was lower in the three and nine months ended September 26, 2020 compared to the same periods last year, primarily due to the effect of tax credits on lower projected worldwide full year income.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was enacted in response to the COVID-19 pandemic crisis. The CARES Act contains provisions relating to net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The deferred tax benefit is estimated to be $0.9 million related to changes in tax depreciation for qualified improvement property.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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