Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

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INCOME TAXES
 3 Months Ended
Apr. 01, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The effective income tax rate for the three months ended March 2023 was 20.0% compared to 19.5% in the 2022 period. The three months ended March 2023 included a net discrete tax benefit primarily related to stock-based compensation which decreased the effective income tax rate by 0.2%. The three months ended March 2022 included a net discrete tax benefit primarily related to stock-based compensation which decreased the effective income tax rate by 1.1%. The effective tax rate without discrete items for the three months ended March 2023 was 20.2% compared to 20.6% in the 2022 period. The decrease was primarily due to changes in our jurisdictional mix of earnings.
During the three months ended March 2023, the amount of net unrecognized tax benefits and associated interest increased by $0.3 million to $15.3 million. Management believes that it is reasonably possible that the amount of unrecognized tax benefits may decrease by $2.5 million within the next 12 fiscal months due to settlements of audits and expiration of statutes of limitations, all of which would reduce income tax expense.
On April 5, 2023, the Company was granted a tax holiday from local income taxes in a foreign jurisdiction through 2031. The associated tax effects, including approximately $5.5 million of tax expense related to the remeasurement of deferred tax assets in this jurisdiction, will be reflected in the second quarter of 2023.