Note 9 - Income Taxes

9 Months Ended

Sep. 02, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 9: Income Taxes

Income tax expense for the three and nine months ended September 2, 2023 includes $6,243 and $9,130 of discrete tax expense, respectively, relating to various U.S. and foreign tax matters. Excluding the discrete tax expense, the overall effective tax rate was 27.1 percent and 28.5 percent for the three and nine months ended September 2, 2023, respectively.

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 U.S. and 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.

As of  September 2, 2023, we had a liability of $16,010 recorded for gross unrecognized tax benefits (excluding interest) compared to $17,582 as of December 3, 2022. As of September 2, 2023 and December 3, 2022, we had accrued $7,137 and $5,680 of gross interest relating to unrecognized tax benefits, respectively.