Income Taxes

9 Months Ended

Jun. 26, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The provision for income taxes consists of the following components (in millions):

	Three Months Ended						Nine Months Ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
United States income taxes	$	4.1		$	1.8		$	27.3		$	52.7
Foreign income taxes	10.2			16.0			30.4			31.3
Provision for income taxes	$	14.3		$	17.8		$	57.7		$	84.0
Effective tax rate	9.9		%	11.0		%	9.2		%	11.6		%

The difference between the Company’s effective tax rate and the 21.0% United States federal statutory rate for the three and nine months ended June 26, 2020 and June 28, 2019, respectively, resulted primarily from foreign earnings taxed at rates lower than the federal statutory rate, a benefit from foreign-derived intangible income deduction (“FDII”), and research and experimentation and foreign tax credits earned, partially offset by a tax on global intangible low-taxed income (“GILTI”), and an increase in tax expense related to a change in the reserve for uncertain tax positions.

The Company operates under a tax holiday in Singapore, which is effective through September 30, 2030. The current tax holiday is conditioned upon the Company’s compliance with certain employment and investment thresholds in Singapore.

Accrued taxes of $29.5 million and $29.7 million have been included in other current liabilities within the consolidated balance sheets as of June 26, 2020, and September 27, 2019, respectively.