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Income Taxes
6 Months Ended
Apr. 03, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesThe Company’s tax provision and the resulting effective tax rate for interim periods is determined based upon its estimated annual effective tax rate ("AETR"), 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 AETR, and if the estimated AETR changes, a cumulative adjustment is made in that quarter. For the three and six months ended March 28, 2020, the Company excluded certain jurisdictions from the calculation of the estimated AETR as the Company anticipated an ordinary loss in these jurisdictions for which no tax benefit could be recognized.
The Company recorded benefit from incomes taxes of $6.5 million and of $1.8 million for the three months ended April 3, 2021 and March 28, 2020, respectively, related to U.S. and non-U.S. income taxes. The Company recorded a provision for incomes taxes of $2.6 million and benefit from income taxes of $0.2 million for the six months ended April 3, 2021 and March 28, 2020, respectively. For the three and six months ended April 3, 2021 the Company's tax provision includes a discrete benefit for U.S. share based compensation. For the six months ended March 28, 2020, the Company's tax provision includes a discrete income tax benefit resulting from 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 six months ended April 3, 2021, the Company maintained a full valuation allowance on its deferred tax assets in the U.S. and the Netherlands due to its history of operating losses. It is possible that within the next 12 months there may be sufficient positive evidence to release a portion or all of the valuation allowance. Release of the valuation allowance in the U.S. and the Netherlands would result in a benefit to income tax expense for the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in the U.S. and the Netherlands.