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Income Taxes
6 Months Ended
Dec. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Our effective tax rate (income taxes as a percentage of income from continuing operations before income taxes) was 31 percent in the quarter ended December 30, 2016 compared with 30 percent in the quarter ended January 1, 2016. In the quarter ended December 30, 2016, our effective tax rate was not impacted by any significant discrete item. In the quarter ended January 1, 2016, our effective tax rate benefited from the effect of legislation enacted in that quarter that restored the U.S. Federal income tax credit for qualifying research and development (“R&D”) expenses for calendar year 2015 and made the credit permanent for periods following December 31, 2015. This resulted in a benefit of approximately $12 million in calculating our effective tax rate in the quarter ended January 1, 2016. Approximately 40 percent of this benefit related to R&D expenses in the second half of fiscal 2015 and the remainder related to R&D expenses in fiscal 2016. Additionally, in the quarter ended January 1, 2016, our effective tax rate benefited from the settlement of a state tax issue for an amount lower than the previously recorded estimate and several differences between GAAP and tax accounting for investments.
Our effective tax rate was 30 percent in the two quarters ended December 30, 2016 compared with 31 percent in the two quarters ended January 1, 2016. In the two quarters ended December 30, 2016, our effective tax rate was impacted by the adoption of the accounting standard issued by the FASB that changed the accounting for certain aspects of stock options and other share-based compensation, as discussed in Note A — Significant Accounting Policies and Recent Accounting Standards in these Notes, and by several differences in GAAP and tax accounting related to investments. In the two quarters ended January 1, 2016, our effective tax rate benefited from the discrete items noted above regarding the quarter ended January 1, 2016.