XML 31 R15.htm IDEA: XBRL DOCUMENT v3.26.1
Income Taxes
 9 Months Ended
Jul. 03, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES
8.    INCOME TAXES

The provision for income taxes consists of the following components (in millions):
Three Months EndedNine Months Ended
July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Provision for income taxes$14.9 $7.0 $55.2 $69.0 
Effective tax rate30.5 %6.3 %27.1 %17.0 %

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 July 3, 2026 resulted primarily from tax on global intangible low-taxed income (“GILTI”), net of foreign tax credits, tax expense related to share-based compensation shortfalls and uncertain tax positions, and transaction costs related to the pending transaction with Qorvo (see Note 13), partially offset by foreign earnings taxed at rates lower than the federal statutory rate and tax benefits from foreign-derived intangible income deduction (“FDII”), and research and experimentation tax credits.

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 27, 2025 resulted primarily from foreign earnings taxed at rates lower than the federal statutory rate, a benefit from FDII, and research and experimentation and foreign tax credits earned, partially offset by a tax on GILTI, and tax expense related to share-based compensation shortfalls.

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 at the beginning of the fiscal year ended September 27, 2024 (“fiscal 2024”). CAMT did not have an impact on the Company’s consolidated financial statements during the three and nine months ended July 3, 2026 and June 27, 2025.

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 was 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 nine months ended July 3, 2026 and June 27, 2025.

In July 2025, the U.S. government enacted the One Big Beautiful Bill Act (“OBBBA”). The OBBBA contains numerous provisions, including the permanent extension or restoration of certain expiring corporate income tax provisions, originally introduced by the Tax Cuts and Jobs Act of 2017, and incremental modifications to the international tax framework. The OBBBA did not have a material impact on the Company’s consolidated estimated annualized effective tax rate during the three and nine months ended July 3, 2026. The Company continues to evaluate the impact of the OBBBA on its business for future periods.

The Company’s federal income tax return for fiscal 2024 is currently under examination by the Internal Revenue Service (“IRS”). The Company was notified of this examination during the third quarter of fiscal 2026. The Company is in the early stages of evaluating the scope and potential impact of this examination.