Income Taxes

9 Months Ended

May 27, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

	Three Months Ended				Nine Months Ended
	May 27, 2022		May 28, 2021		May 27, 2022		May 28, 2021
Income before income taxes	$	29,649	$	(2,644)	$	68,660	$	9,702
Income tax provision	5,154		4,010		20,495		8,485

Income tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to us and our subsidiaries, adjusted for certain discrete items which are fully recognized in the period they occur. Accordingly, the interim effective tax rate may not be reflective of the annual estimated effective tax rate.

Our provision for income taxes for the nine months ended May 27, 2022 increased by $12.0 million as compared to the same period in the prior year, primarily due to an increase in the amount of earnings subject to non-U.S. tax.

As of May 27, 2022 and August 27, 2021, we had a full valuation allowance for net deferred tax assets associated with our U.S. operations. The amount of the deferred tax asset considered realizable could be adjusted if significant positive evidence increases.

Determining the consolidated provision for income tax expense, income tax liabilities and deferred tax assets and liabilities involves judgment. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates, which involves estimating current tax exposures, as well as making judgments regarding the recoverability of deferred tax assets in each jurisdiction. The estimates used could differ from actual results, which may have a significant impact on operating results in future periods.