Income taxes |
6 Months Ended | ||
|---|---|---|---|
Dec. 30, 2016 | |||
| Income taxes |
As of December 30, 2016 and June 24, 2016, the liability for uncertain tax positions including accrued interest and penalties was $1.9 million and $1.8 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to decrease within the next 12 months due to the lapse of the applicable statute of limitations in foreign tax jurisdictions. The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2012 to 2016 remain open to examination by U.S. federal and state tax authorities, and foreign tax authorities. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter. The effective tax rate for the Company for the three months ended December 30, 2016 and December 25, 2015 remained flat at 6.8% of net income. The Company’s taxable income and income tax expenses for the three months ended December 30, 2016 increased proportionately on an absolute dollars basis, compared with the three months ended December 25, 2015. The effective tax rate for the Company for the six months ended December 30, 2016 and December 25, 2015 remained flat at 6.7% of net income. The Company’s taxable income and income tax expenses for the six months ended December 30, 2016 increased proportionately on an absolute dollars basis, compared with the six months ended December 25, 2015. |