Income Taxes

6 Months Ended

Mar. 28, 2025

Income Tax Disclosure [Abstract]

INCOME TAXES

8.     INCOME TAXES

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

	Three Months Ended						Six Months Ended
	March 28, 2025			March 29, 2024			March 28, 2025			March 29, 2024
United States income taxes	$	7.4		$	(4.6)		$	22.5		$	7.5
Foreign income taxes	26.3			14.2			39.6			22.5
Provision for income taxes	$	33.7		$	9.6		$	62.1		$	30.0
Effective tax rate	32.9		%	5.0		%	21.2		%	6.7		%

The difference between the Company’s effective tax rate and the 21.0% United States federal statutory rate for the three and six months ended March 28, 2025 and March 29, 2024 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 tax expense related to share-based compensation shortfalls. In addition to the aforementioned factors, the Company’s effective tax rate was higher than the 21.0% United States federal statutory rate for the three and six months ended March 28, 2025, due to the remeasurement of existing net deferred tax liabilities in Singapore.

In August 2022, the U.S. government enacted the Inflation Reduction Act, which imposes a corporate alternative minimum tax (“CAMT”) of 15% on corporations with three-year average annual adjusted financial statement income exceeding $1.0 billion. The Company was subject to the provisions of CAMT beginning in fiscal 2024. CAMT had no impact to the Company’s consolidated financial statements during the three and six months ended March 28, 2025 and March 29, 2024.

In December 2021, the Organization for Economic Co-operation and Development’s (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) released Global Anti-Base Erosion (“GloBE”) rules under Pillar Two. Many countries have implemented laws based on Pillar Two which is effective for the Company beginning in fiscal 2025. Pillar Two did not have a material impact on the Company's consolidated financial statements during the three and six months ended March 28, 2025.