INCOME TAXES

9 Months Ended

May 03, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 11—INCOME TAXES

The effective tax rate for the third quarter of fiscal 2025 was a benefit rate of 56.3% on pre-tax loss compared to a benefit rate of 23.1% on pre-tax loss for the third quarter of fiscal 2024. The change from the third quarter of fiscal 2024 is primarily driven by the impact of a partnership investment entered into in the third quarter of fiscal 2025 as well as a discrete tax benefit recorded in the third quarter of fiscal 2025 for return to provision tax credits, combined with a reduction in pre-tax loss. The primary drivers for the variation between the Company’s statutory tax rate and its effective tax rate were the impact of a partnership investment entered into in the third quarter of fiscal 2025 and a discrete tax benefit recorded in the third quarter of fiscal 2025 for return to provision tax credits.

The effective tax rate for fiscal 2025 year-to-date was a benefit rate of 35.6% on pre-tax loss compared to a benefit rate of 21.5% on pre-tax loss for fiscal 2024 year-to-date. The change from fiscal 2024 year-to-date is primarily driven by the impact of a partnership investment entered into in the third quarter of fiscal 2025 combined with a reduction in pre-tax loss. The primary driver for the variation between the Company’s statutory tax rate and its effective tax rate was the impact of a partnership investment entered into in the third quarter of fiscal 2025.