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Income Taxes
 9 Months Ended
Jun. 03, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

Our income tax (provision) benefit consisted of the following:
Quarter endedNine months ended
June 3,
2021		May 28,
2020		June 3,
2021		May 28,
2020
Income before taxes$1,806 $870 $3,282 $1,858 
Income tax (provision) benefit(65)(68)(164)(144)
Effective tax rate3.6 %7.8 %5.0 %7.8 %

In the third quarter of 2021, we recorded a $104 million tax benefit on the discrete $435 million charge to adjust our Lehi assets held for sale to their estimated net realizable value.

We operate in a number of jurisdictions outside the United States, including Singapore, where we have tax incentive arrangements. These incentives expire, in whole or in part, at various dates through 2034 and are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements reduced our tax provision by $276 million (benefiting our diluted earnings per share by $0.24) and $377 million ($0.33 per diluted share) for the third quarter and first nine months of 2021, respectively, and by $70 million ($0.06 per diluted share) and $78 million ($0.07 per diluted share) for the third quarter and first nine months of 2020, respectively.
As of June 3, 2021, gross unrecognized tax benefits were $632 million, substantially all of which would affect our effective tax rate in the future, if recognized. Increases to unrecognized tax benefits were primarily due to tax return positions taken during 2021. Amounts accrued for interest and penalties related to uncertain tax positions were not significant for any period presented. We are currently under audit by the Internal Revenue Service for our 2018 and 2019 tax years. We believe that adequate amounts of taxes and related interest and penalties have been provided.