Income Taxes

3 Months Ended

Apr. 03, 2021

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
	April 3, 2021			March 28, 2020
Income (loss) before income taxes	$	20,845		$	(25,539)
Income taxes	$	5,827		$	(1,643)
Effective tax rate	28.0		%	6.4		%

The Corporation's effective tax rate was higher in the three months ended April 3, 2021, compared to the same period last year. The variance is due to higher financial performance in the current year period and an improved full year 2021 income outlook, relative to the prior year quarter performance and full year outlook which were adversely impacted by the onset of the COVID-19 pandemic and resulting significant economic disruption. This resulted in a greater rate benefit from tax credits in the first quarter of 2020.

- 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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