Note 9 - Income Taxes

6 Months Ended

Jun. 03, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 9: Income Taxes

Income tax expense for the three and six months ended June 3, 2023 includes $2,042 and $2,888 of discrete tax expense, respectively, relating to various foreign tax matters offset by an excess tax benefit related to U.S. stock compensation. Excluding the discrete tax expense, the overall effective tax rate was 29.5 percent and 29.4 percent for the three and six months ended June 3, 2023, respectively.

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.

As of  June 3, 2023, we had a liability of $16,434 recorded for gross unrecognized tax benefits (excluding interest) compared to $17,582 as of December 3, 2022. As of June 3, 2023 and December 3, 2022, we had accrued $5,933 and $5,680 of gross interest relating to unrecognized tax benefits, respectively.