INCOME TAXES |
9 Months Ended |
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Oct. 02, 2021 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The effective income tax rate for the nine months ended September 2021 was 19.3% compared to (7.2)% in the 2020 period. The nine months ended September 2021 included a net discrete tax benefit of $1.3 million, primarily comprised of $2.2 million of tax benefit related to stock compensation and $0.4 million of tax expense related to a change in uncertain tax positions. The $1.3 million net discrete tax benefit in the nine months ended September 2021 decreased the effective income tax rate by 0.7%.
The nine months ended September 2020 included a net discrete tax benefit of $6.8 million, primarily comprised of $6.3 million of tax benefit recognized due to the enactment of Swiss tax reform in the canton of Ticino and $0.7 million of tax benefit related to the finalization of U.S. federal, state and foreign tax return filings. The $6.8 million net discrete tax benefit in the nine months ended September 2020 decreased the effective income tax rate by 29.2%.
The effective income tax rate without discrete items for the nine months ended September 2021 was 20.0% compared to 22.0% in the 2020 period. The decrease was primarily due to changes in our jurisdictional mix of earnings and the relative impact of losses incurred for which no related tax benefit was recognized.
During the nine months ended September 2021, the amount of net unrecognized tax benefits and associated interest increased by $0.5 million to $13.9 million. Management also believes that it is reasonably possible that the amount of unrecognized tax benefits may decrease by $0.6 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.
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