Income Taxes |
6 Months Ended |
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Jul. 01, 2023 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The effective tax rate for the three months ended July 1, 2023 and July 2, 2022 was 21.2 percent and 21.9 percent, respectively. The effective tax rate for the three months ended July 1, 2023 was lower than the same period in the prior year primarily due to the mix in earnings and the increase to the domestic benefit of export sales.
The effective tax rate for the six months ended July 1, 2023 and July 2, 2022 was 35.3 percent and 21.5 percent, respectively. The effective tax rate for the six months ended July 1, 2023 was higher than the same period in the prior year primarily due to an intercompany sale of certain intellectual property rights (“IP rights”) in the first quarter of 2023, to better align the ownership of these rights with how our business operates. The completion of this sale from one of our affiliates in Norway to the United States resulted in a discrete income tax expense of $52.9 million in the first quarter of 2023, which will be paid over time, as permitted under current Norwegian tax law.
The Company is regularly audited by federal, state and foreign tax authorities. The Internal Revenue Service ("IRS") has completed its field examination and has issued its Revenue Agents Report through the 2014 tax year and all open issues have been resolved. The Company is currently open to tax examinations by the IRS for the 2019 through 2021 tax years. The Company is open to state and local tax audits in major tax jurisdictions dating back to the 2017 taxable year. The Company is no longer subject to income tax examinations by any major foreign tax jurisdiction for years prior to 2015.
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