XML 23 R11.htm IDEA: XBRL DOCUMENT v3.22.1
Income Taxes
 6 Months Ended
Apr. 02, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense for the three and six months ended April 2, 2022 was $4.4 million and $7.8 million, respectively, compared to $4.7 million and $10.1 million for the three and six months ended April 3, 2021, respectively.
The effective tax rates for the three and six months ended April 2, 2022 were 14.2% and 13.4%, respectively, compared to the effective tax rates of 10.1% and 11.5% for the three and six months ended April 3, 2021, respectively. The increases were due to increases in discrete tax expenses of $1.2 million and $0.7 million for the three and six months ended April 2, 2022, respectively, as compared to the three and six months ended April 3, 2021, as well as a change in the geographic distribution of pre-tax book income. The increases in discrete tax expenses were primarily due to a $0.9 million discrete tax benefit during the three and six months ended April 3, 2021, related to the release of a full valuation allowance for a jurisdiction within the EMEA segment related to a settlement of an income tax audit.
The amount of unrecognized tax benefits recorded for uncertain tax positions increased by $0.6 million for the three months ended April 2, 2022. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three and six months ended April 2, 2022 was not material.
One or more uncertain tax positions may be settled within the next 12 months. Settlement of these matters is not expected to have a material effect on the Company's consolidated results of operations, financial position and cash flows. The Company is not currently under examination by taxing authorities in the U.S. The Company is under audit in a foreign jurisdiction but a settlement is not expected to have a material impact.
The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended April 2, 2022, the Company continued to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the EMEA segment and a partial valuation against its net deferred tax assets in certain jurisdictions within the AMER segment, as it was more likely than not that these assets would not be fully realized based primarily on historical performance. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until it determines it is more likely than not that the deferred tax assets will be realized.