Income Taxes |
3 Months Ended |
|---|---|
Apr. 03, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | NOTE 12. INCOME TAXES For the first quarter of 2026, our effective income tax rate was 24.7%, as compared to 22.8% in the corresponding period in 2025. The increase was primarily due to lower deferred tax benefits from net controlled foreign corporation tested income (“net CFC tested income”, formerly referred to as global intangible low-taxed income or “GILTI”), partially offset by lower related cash taxes. Unrecognized tax benefits of $39.1 million and $40.0 million at the end of the first quarter of 2026 and at the end of 2025, if recognized, would favorably affect the effective income tax rate in future periods. At the end of the first quarter of 2026 and at the end of 2025, we accrued interest and penalties of $10.7 million and $9.3 million. We accounted for the tax implications of the enacted OBBBA, and the impact to our 2026 tax rate is immaterial. The OBBBA permanently repeals the domestic R&D capitalization requirement. As a result, we expect cash tax reductions of approximately $53 million in 2026.
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