Note 8 - Income Taxes

9 Months Ended

Aug. 27, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 8: Income Taxes

Income tax expense for the three and nine months ended August 27, 2022 includes $6,449 and $7,696 of discrete tax expense, respectively, primarily 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 29.9 percent and 28.7 percent for the three and nine months ended August 27, 2022 respectively.

Income tax expense for the three and nine months ended August 28, 2021 includes $5,626 and $5,068 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. Excluding the discrete tax expense, the overall effective tax rate was 27.6 percent and 27.4 percent for the three and nine months ended August 28, 2021 respectively.

As of  August 27, 2022, we had a liability of $14,541 recorded for gross unrecognized tax benefits (excluding interest) compared to $13,281 as of November 27, 2021. As of August 27, 2022 and November 27, 2021, we had accrued $4,555 and $2,448 of gross interest relating to unrecognized tax benefits, respectively.