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Income taxes
9 Months Ended
Jun. 27, 2020
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate, adjusted for the effect of discrete items arising in that quarter. The impact of such inclusions could result in a higher or lower effective tax rate during a quarter, based upon the mix and timing of actual earnings or losses versus annual projections. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, a cumulative adjustment is made in that quarter.

The Company recorded a provision for incomes taxes of $0.2 million and $0.8 million for the three months ended June 27, 2020 and June 29, 2019, respectively, related to foreign and U.S. federal and state income taxes. The Company recorded a benefit from income taxes of less than $0.1 million and a provision for income tax expense of $3.1 million for the nine months ended June 27, 2020 and June 29, 2019, respectively, related to foreign and U.S. federal and state income taxes. For the nine months ended June 27, 2020, the Company's tax provision includes a discrete income tax benefit of approximately $0.6 million as a result of a favorable release of uncertain tax positions in the U.S. coinciding with the issuance of the Base Erosion and Anti-Abuse Tax (“BEAT”) Regulations.

For the three and nine months ended June 27, 2020, the Company excluded the U.S. and certain foreign jurisdictions from the calculation of the estimated annual effective tax rate ("AETR") as the Company anticipates an ordinary loss in these jurisdictions for which no tax benefit can be recognized. For the three and nine months ended June 29, 2019, the Company calculated its U.S. income tax provision using the discrete method as though the interim year to date period was an annual period. The application of the AETR method generally required by ASC 740 was impractical for the U.S. interim tax provision in fiscal 2019 given that normal deviations in the projected pre-tax net income (loss) in the U.S. could have resulted in a disproportionate and unreliable effective tax rate under the AETR method.
For the nine months ended June 27, 2020, the Company maintained a full valuation allowance on its U.S. deferred tax assets due to its history of U.S operating losses. It is possible that within the next 12 months there may be sufficient positive evidence to release a significant portion of the U.S. valuation allowance. Release of the U.S. valuation allowance would result in the establishment of certain deferred tax assets and a benefit to income tax expense for the period the release is recorded, which could have a material impact on the Company's net earnings. The exact timing and amount of the valuation allowance release are subject to change based on the level of profitability achieved.