|6 Months Ended|
Jul. 03, 2021
|Income Tax Disclosure [Abstract]|
|INCOME TAXES||INCOME TAXES
The effective income tax rate for the six months ended June 2021 was 19.3% compared to 21.8% in the 2020 period. The six months ended June 2021 included a net discrete tax benefit of $0.6 million, primarily comprised of $0.8 million of tax benefit related to stock compensation and $0.2 million of tax expense related to unrecognized tax benefits and interest. The $0.6 million net discrete tax benefit in the six months ended June 2021 decreased the effective income tax rate by 0.6%.
The six months ended June 2020 included a net discrete tax benefit of $7.7 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 $1.1 million of tax benefit related to the finalization of state tax return filings. The $7.7 million net discrete tax benefit in the six months ended June 2020 increased the effective income tax rate by 16.8%.
The effective income tax rate without discrete items for the six months ended June 2021 was 19.9% compared to 5.0% on the 2020 period loss. The increase 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 six months ended June 2021, the amount of net unrecognized tax benefits and associated interest increased by $0.4 million to $13.8 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.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef