Income Taxes |
6 Months Ended |
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Jul. 04, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 12. INCOME TAXES For the second quarter of 2025, our effective income tax rate was 21.3%, as compared to 25.3% in the corresponding period in 2024. For the first two quarters, our effective income tax rate was 21.9%, as compared to 25.1% in the prior year. The decreases were primarily due to gains from the Ag divestiture in 2024. Unrecognized tax benefits of $46.4 million and $45.8 million at the end of the second quarter of 2025 and at the end of 2024, if recognized, would favorably affect the effective income tax rate in future periods. At the end of the second quarter of 2025 and at the end of 2024, we accrued interest and penalties of $10.2 million and $8.8 million. The OBBBA, signed into law on July 4, 2025, includes changes to U.S. federal tax regulations. We have accounted for its tax implications in the second quarter of 2025 based on our current interpretation of the legislation, and the impact to our tax rate for this period is immaterial. The OBBBA permanently repeals the domestic R&D capitalization requirement. As a result, we expect cash tax reductions of approximately $32 million in 2025 and approximately $80 million in subsequent years. The Company continues to evaluate the OBBBA and does not currently believe it will have a material impact on our effective income tax rate.
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