Income taxes

3 Months Ended

Sep. 27, 2024

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

As of September 27, 2024 and June 28, 2024, the liability for uncertain tax positions including accrued interest and penalties was $2.0 million and $1.3 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to increase within the next 12 months due to additional provisions associated with uncertain tax positions from one of the Company's subsidiaries and interest on these positions.

The Company files income tax returns in the United States and foreign tax jurisdictions. The tax years from 2017 to 2023 remain open to examination by U.S. federal and state, and foreign tax authorities. The Company’s income tax is recognized based on the best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Company’s estimated annual effective tax rate changes, the Company makes a cumulative adjustment in that quarter.

The effective tax rate for the Company for the three months ended September 27, 2024 and September 29, 2023 was 4.2% and 7.2%, respectively, of net income. The decrease was due to a full valuation allowance of $2.1 million for deferred tax assets that was set up during the three months ended September 29, 2023 for the Company's subsidiary in Israel.