Income Taxes

9 Months Ended

Apr. 01, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded an income tax provision of $2,102 and $5,362 on income before income taxes of $6,241 and $20,997 for the third quarters ended April 1, 2022 and April 2, 2021, respectively. The Company recorded an income tax provision of $1,506 and $11,993 on (loss) income before income taxes of $(4,134) and $56,112 for the nine months ended April 1, 2022 and April 2, 2021, respectively.

During the third quarters ended April 1, 2022 and April 2, 2021, the Company recognized a discrete tax provision (benefit) of $28 and $(175) related to stock-based compensation shortfalls and windfalls, respectively. During the nine months ended April 1, 2022 and April 2, 2021, the Company recognized a discrete tax provision (benefit) of $906 and $(2,785) related to stock-based compensation shortfalls and windfalls, respectively.

The effective tax rate for the third quarters and nine months ended April 1, 2022 and April 2, 2021 differed from the Federal statutory rate primarily due to Federal and State research and development credits, non-deductible compensation, stock-based compensation, and state taxes. In addition, during the third quarter ended April 1, 2022, the Company had certain unbenefited deferred tax assets.

During the third quarter ended April 1, 2022, there were no material changes to the Company's unrecognized tax positions.

Within the calculation of the Company's annual effective tax rate, the Company has used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service (“IRS”).