XML 30 R20.htm IDEA: XBRL DOCUMENT v3.22.2
INCOME TAXES
9 Months Ended
Jul. 02, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES 13. INCOME TAXES
The following table reflects the provision for income taxes and the effective tax rate for the three and nine months ended July 2, 2022 and July 3, 2021: 
 Three months endedNine months ended
(dollar amounts in thousands)July 2, 2022July 3, 2021July 2, 2022July 3, 2021
Provision for income taxes$5,165 $7,212 $36,813 $25,722 
Effective tax rate4.2 %6.0 %9.1 %9.9 %

The decrease in provision for income taxes for the three months ended July 2, 2022 as compared to the three months ended July 3, 2021 is primarily related to a decrease in foreign minimum tax, offset by an increase in tax expense due to jurisdictional mix of profitability and a decrease in tax benefit from the release of valuation allowance recorded against the net deferred tax assets. During the three months ended July 2, 2022 and July 3, 2021, the Company recorded a $4.9 million and $7.2 million tax benefit, respectively, from the release of valuation allowance recorded against the net deferred tax assets of a certain foreign jurisdiction due to a forecasted increase in future profitability in the corresponding jurisdiction. The increase in provision for income taxes for the nine months ended July 2, 2022 as compared to the nine months ended July 3, 2021 is primarily related to an overall increase in year-to-date profitability, principally earned in lower tax jurisdictions, and foreign minimum tax.
For the three and nine months ended July 2, 2022, 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, a release of valuation allowances on certain deferred tax assets and taxes on unrepatriated foreign earnings, partially offset by foreign minimum tax.