Income Taxes |
6 Months Ended |
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Jun. 27, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | INCOME TAXES The Company’s effective tax rate for the three and six months ended June 27, 2025 was 23.9% and 22.4%, respectively, as compared to 23.8% and 18.8% for the three and six months ended June 28, 2024, respectively. The increase in the effective tax rate for the three months ended June 27, 2025 as compared to the comparable period in the prior year was primarily due to an increase in foreign earnings taxed at higher rates than the U.S. federal statutory rate. The increase in the effective tax rate for the six months ended June 27, 2025 as compared to the comparable period in the prior year was primarily due to favorable impacts related to business reorganizations and divestitures during the six months ended June 28, 2024. The Company’s effective tax rate for the three and six months ended June 27, 2025 differs from the U.S. federal statutory rate of 21% primarily due to the effect of state taxes, non-U.S. income taxed at different rates than the U.S. federal statutory rate, foreign derived intangible income, and tax credits. The Company’s effective tax rate for the three and six months ended June 28, 2024 differs from the U.S. federal statutory rate of 21% due to the effect of state taxes, tax credits, and the impact of the divestiture of the Coats business. One Big Beautiful Bill On July 4, 2025, the One Big Beautiful Bill (“OBBB”) was signed into law. The OBBB includes several changes to corporate taxation, notably modifications to capitalization of research and development expenses and accelerated depreciation of fixed assets. While the Company is currently assessing the potential effects of the provisions within the OBBB, the Company currently expects a reduction in cash tax payments for the year ended December 31, 2025 due to the utilization of deferred tax assets related to previously capitalized research and development expenses that can now be deducted under the OBBB.
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