INCOME TAXES

3 Months Ended

Jan. 02, 2021

The following table reflects the provision for income taxes and the effective tax rate for the three months ended January 2, 2021 and December 28, 2019:


	Three months ended
(dollar amounts in thousands)		January 2, 2021			December 28, 2019
Provision for income taxes		$	6,298		$	2,133
Effective tax rate		11.5		%	13.6		%

The increase in provision for income taxes and decrease in effective tax rate for the three months ended January 2, 2021 as compared to the three months ended December 28, 2019 is primarily related to an increase in profitability, principally earned in lower tax jurisdictions, and foreign minimum tax, offset by the net release of valuation allowances recorded against certain loss and credit carryforwards due to an increase in profitability in the corresponding jurisdictions in fiscal 2021.

For the three months ended January 2, 2021, the effective tax rate is lower than the U.S. federal statutory tax rate primarily due to foreign income earned in lower tax jurisdictions, tax incentives, tax credits, and the net release of valuation allowances recorded against certain loss and credit carryforwards, partially offset by foreign withholding taxes, taxes on unrepatriated foreign earnings, deemed income, and foreign minimum tax.

- 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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