XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Note 11 - Income Taxes
 3 Months Ended
Oct. 02, 2022
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 11 – Income Taxes

 

At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used in providing for income taxes on a year-to-date basis and may change in subsequent interim periods. The Company’s effective tax rate for the three months ended October 2, 2022 was 25.3% compared to 37.9% in the same period of the prior year. The effective tax rate differed from the U.S. federal statutory rate of 21.0% for the three months ended October 2, 2022, primarily due to state income taxes and nondeductible expenses for executive compensation, partially offset by various permanent differences and tax credits. The effective tax rate differed from the U.S. federal statutory rate of 21.0% for the three months ended September 26, 2021, primarily due to excess tax benefits from stock-based compensation, as well as state income taxes and nondeductible expenses for executive compensation.

 

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign countries. The Company completed its U.S. federal examination for fiscal 2018, however, fiscal years 2019, 2020 and 2021 remain subject to U.S. federal examination. Due to ongoing state examinations and nonconformity with the U.S. federal statute of limitations for assessment, certain states remain open from fiscal 2016. The Company's foreign income tax filings from fiscal 2017 are open for examination by its respective foreign tax authorities, mainly Canada, Brazil, and the United Kingdom.

 

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At October 2, 2022, the Company has an unrecognized tax benefit, including accrued interest and penalties, of approximately $1.4 million. The Company believes that $0.1 million of unrecognized tax positions will be resolved over the next twelve months.