Income Taxes

6 Months Ended

Oct. 26, 2019

The provision for income taxes for an interim period is based on an estimated effective income tax rate for the full fiscal year and applies that rate to ordinary year-to-date earnings or loss. The estimated annual effective income tax rate is determined excluding the effects of unusual or significant discrete items that are reported net of the related tax effects and in the period in which they occur. In addition, any effects of enacted tax law or rate changes as well as the Company’s ability to utilize various tax assets is recognized in the period in which the change occurs.



	Three Months Ended						Six Months Ended
(Dollars in Millions)	October 26, 2019			October 27, 2018			October 26, 2019			October 27, 2018
Income before Income Taxes	$	29.0		$	17.6		$	64.6		$	45.8
Income Tax Expense	$	5.2		$	3.0		$	12.5		$	7.5
Effective Tax Rate	17.9		%	17.0		%	19.3		%	16.4		%

The income tax provision in both the three and six months ended October 26, 2019 was lower than the U.S. statutory tax rate primarily due to foreign investment tax credits and foreign operations with lower statutory rates. The income tax provision in both the three and six months ended October 27, 2018 was lower than the U.S. statutory tax rate primarily due to foreign investment tax credits, foreign operations with lower statutory rates and the deduction for stock-based compensation.

The Company's unrecognized income tax benefits were $5.2 million and $3.1 million as of October 26, 2019 and April 27, 2019, respectively. If any portion of the Company's unrecognized tax benefits is recognized, it could impact the Company's effective tax rate. The tax reserves are reviewed periodically and adjusted considering changing facts and circumstances, such as progress of tax audits, lapse of applicable statutes of limitations and changes in tax law.