Note 8 - Income Taxes

6 Months Ended

May 28, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 8: Income Taxes

Income tax expense for the three and six months ended May 28, 2022 includes $4,149 and $1,248 of discrete tax expense, respectively, relating to the revaluation of cross-currency swap agreements due to depreciation of the Euro versus the U.S. Dollar, as well as various foreign tax matters offset by the tax effect of legal entity mergers. Excluding the discrete tax expense, the overall effective tax rate was 27.9 percent for both the three and six months ended May 28, 2022. 

Income tax expense for the three and six months ended May 29, 2021 includes $600 and $558 of discrete tax benefit, respectively. Excluding the discrete tax benefit, the overall effective tax rate was 27.1 percent and 27.2 percent for the three and six months ended May 29, 2021 respectively.

As of  May 28, 2022, we had a liability of $15,414 recorded for gross unrecognized tax benefits (excluding interest) compared to $13,281 as of November 27, 2021. As of May 28, 2022 and November 27, 2021, we had accrued $3,215 and $2,448 of gross interest relating to unrecognized tax benefits, respectively.