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INCOME TAXES
 9 Months Ended
Jul. 02, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The effective tax rate for the three and nine month periods ended July 2, 2023 and July 3, 2022, was as follows:
Three Month Periods EndedNine Month Periods Ended
Effective tax rateJuly 2, 2023July 3, 2022July 2, 2023July 3, 2022
SBH(8.8)%40.2 %10.3 %28.5 %
SB/RH(10.8)%34.9 %9.2 %28.6 %
The estimated annual effective tax rate applied to the three and nine month periods ended July 2, 2023, differs from the US federal statutory rate of 21% principally due to income earned outside the U.S. that is subject to U.S. tax, including the U.S. tax on global intangible low taxed income (“GILTI”), certain nondeductible expenses, foreign currency impacts, state income taxes and foreign rates that differ from the U.S. federal statutory rate. During Fiscal 2023, the Company had U.S. net operating loss carryforwards ("NOL"), which did not allow it to take advantage of the foreign-derived intangible income deduction. The Company’s federal effective tax rate on GILTI was therefore 21%. During the nine month period ended July 2, 2023, the Company recorded a discrete $56.1 million tax benefit related to the impairment of goodwill and certain intangible assets.
The Company realized a U.S. taxable gain on the HHI divestiture entered into during the three month period ended July 2, 2023, which resulted in the utilization of all available U.S. federal and substantially all available U.S. state NOLs and credits. Certain NOLs could not be used due to limitations related to prior ownership changes under Section 382 of the Internal Revenue Code.
As a result of the HHI divestiture, the Company may be able to claim foreign tax credits and foreign-derived intangible income deductions in continuing operations in future periods.

As of July 2, 2023 and September 30, 2022, there was $505.7 million of U.S. federal income taxes payables and $2.7 million of U.S. federal income taxes receivable, respectively, with its parent company on the SB/RH Condensed Consolidated Statements of Financial Position, calculated as if SB/RH were a separate taxpayer.