Income Taxes

6 Months Ended

Sep. 24, 2021

The Company recorded the following tax (benefit) provision in its unaudited consolidated statements of operations:


	Three-Month Period Ended						Six-Month Period Ended
	September 24, 2021			September 25, 2020			September 24, 2021			September 25, 2020
Operating taxes	$	6,150		$	1,589		$	11,268		$	2,405
Discrete tax items	(7)			493			(862)			205
Provision for income taxes	$	6,143		$	2,082		$	10,406		$	2,610
Annual operating tax rate	15.6		%	13.6		%	15.8		%	14.1		%
Effective tax rate	15.6		%	17.8		%	14.6		%	15.3		%

The Company’s provision for income taxes is comprised of the year-to-date taxes based on an estimate of the annual effective tax rate plus the tax impact of discrete items.

The Company is subject to tax in the U.S. and various foreign jurisdictions. The Company’s effective tax rate can fluctuate primarily based on: the mix of its U.S. and foreign income; the impact of discrete transactions; and the difference between the amount of tax benefit generated by the foreign derived intangible income deduction (“FDII”) and research credits offset by the additional tax from the global intangible low-tax income (“GILTI”).

The Company regularly assesses the likelihood of outcomes that could result from the examination of its tax returns by the IRS and other tax authorities to determine the adequacy of its income tax reserves and expense. Should actual events or results differ from the Company’s then-current expectations, charges or credits to the Company’s provision for income taxes may become necessary. Any such adjustments could have a significant effect on the results of operations.

Income tax expense and the effective income tax rate were $6,143, or 15.6%, and $10,406, or 14.6%, for the three- and six-month periods ended September 24, 2021, respectively, and $2,082, or 17.8%, and $2,610, or 15.3%, for the three- and six-month periods ended September 25, 2020, respectively. The fluctuation in our effective income tax rate relates primarily to differences in our US taxable income, estimated FDII benefits, GILTI income, research credits, non-deductible stock-based compensation charges, and discrete tax items.

- Definition

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.

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