Income Taxes |
6 Months Ended |
|---|---|
Jun. 28, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Our effective tax rate was 18.6% and 19.5% for the second quarter of 2025 and 2024, respectively, and 16.6% and 17.7% for the first half of 2025 and 2024, respectively. Our effective tax rate was lower than the U.S. federal statutory rate of 21%, largely due to the favorable impact of research and development credits and tax deductions for foreign-derived intangible income. On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted and changed certain sections of U.S. income tax law. Among other things, the Act makes permanent 1) the option to deduct domestic research and development expenditures immediately in the year incurred, 2) the deduction of the full cost of eligible assets in the first year placed in service and 3) the EBITDA-based business interest expense limitation as well as modifications to the international tax framework. While we are still assessing these changes and the effects of the Act on our consolidated financial statements, we expect the Act to increase our cash flows from operating activities for the full year 2025 and increase our effective tax rate for the full year 2025.
|