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Income Taxes
6 Months Ended
Apr. 03, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company's effective tax rate was 30.8% and 31.0% for the three and six months ended April 3, 2026, respectively, and 91.7% and 66.7% for the three and six months ended March 28, 2025, respectively.
The most significant item contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company’s effective tax rate for the three and six months ended April 3, 2026 and March 28, 2025 was an increase in the valuation allowance against the deferred tax asset related to disallowed interest expense of $5 million and $9 million, respectively, for the three and six months ended April 3, 2026, and $17 million and $28 million, respectively, for the three and six months ended March 28, 2025.
On July 4, 2025, the One Big, Beautiful Bill Act (“OBBBA”) was enacted, introducing several significant amendments to U.S. income tax legislation including the permanent restoration of EBITDA as the basis for computing business interest expense limitations and the immediate expensing of research expenditures. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We have incorporated these amendments into our fiscal year 2025 and 2026 income tax provisions, as applicable, which impacted the realizability of our deferred tax assets and valuation allowance assessment.