XML 31 R20.htm IDEA: XBRL DOCUMENT v3.21.1
Income Taxes
6 Months Ended
Mar. 26, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our income tax expense, deferred tax assets and liabilities, and unrecognized tax benefits reflect management's best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense.
Unrecognized Tax Benefits
As of March 26, 2021, the total amount of gross unrecognized tax benefits was $66.9 million, of which $44.6 million, if recognized, would reduce our effective tax rate. As of September 25, 2020, the total amount of gross unrecognized tax benefits was $60.7 million, of which $42.0 million, if recognized, would reduce our effective tax rate. The second quarter fiscal 2021 increase was primarily due to current year reserve and interest accruals. Our liability for unrecognized tax benefits is classified within other non-current liabilities in our condensed consolidated balance sheets.
Effective Tax Rate
Each period, the combination of multiple different factors can impact our effective tax rate. These factors include both recurring items such as tax rates and the relative amount of income earned in foreign jurisdictions, as well as discrete items that may occur in, but are not necessarily consistent between periods.
Compared to the Federal statutory rate of 21%, our effective tax rate in the second quarter of fiscal 2021 was 10.6% or a tax expense of $9.0 million and our effective tax rate in the second quarter of fiscal 2020 was 20.0% or a tax expense of $22.1 million. The decrease in our effective tax rate was primarily due to a shift in the jurisdictional mix of revenue.