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INCOME TAXES
 6 Months Ended
Jul. 01, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company’s income tax (benefit) expense and related effective rates were as follows (in thousands, except percentage data):
For the 13 Weeks Ended July 1, 2023For the 13 Weeks Ended July 2, 2022For the 26 Weeks Ended July 1, 2023For the 26 Weeks Ended July 2, 2022
Income tax (benefit) expense$(7,198)$2,003 $(5,595)$6,690 
Effective tax rate21.5 %(11.8)%7.7 %(19.9)%
The effective tax rate in the Second Quarter was favorable as compared to the Prior Year Quarter due to reduced foreign income taxes and favorable discrete items. The overall tax rate is impacted by the Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Cuts and Jobs Act which requires the inclusion of certain foreign income in the tax return which absorbs the U.S. net operating loss ("NOL"). Foreign income taxes are also paid on this same foreign income, resulting in double taxation.
The effective tax rate can vary from quarter-to-quarter due to changes in the Company's global mix of earnings, the resolution of income tax audits and changes in tax law.
As of July 1, 2023, the Company's total amount of unrecognized tax benefits, excluding interest and penalties, was $23.3 million, all of which would favorably impact the effective tax rate in future periods, if recognized. The Company is subject to examinations in various state and foreign jurisdictions for its 2013-2022 tax years, none of which the Company believes are significant, individually or in the aggregate. Tax audit outcomes and timing of tax audit settlements are subject to significant uncertainty.
The Company has classified uncertain tax positions as long-term income taxes payable, unless such amounts are expected to be settled within twelve months of the condensed consolidated balance sheet date. As of July 1, 2023, the Company had recorded $8.5 million of unrecognized tax benefits, excluding interest and penalties, for positions that are expected to be settled within the next twelve months. Consistent with its past practice, the Company recognizes interest and/or penalties related to income tax overpayments and income tax underpayments in income tax expense and income taxes receivable/payable. At
July 1, 2023, the total amount of accrued income tax-related interest included in the condensed consolidated balance sheets was $5.6 million. There was no accrued tax-related penalties.