INCOME TAXES

9 Months Ended

Jun. 27, 2020

The following table reflects the provision for income taxes and the effective tax rate for the three and nine months ended June 27, 2020 and June 29, 2019:



	Three months ended						Nine months ended
(dollar amounts in thousands)	June 27, 2020			June 29, 2019			June 27, 2020			June 29, 2019
Provision for income taxes	$	690		$	3,864		$	3,985		$	19,106
Effective tax rate	5.8		%	75.0		%	9.8		%	78.2		%

The decrease in provision for income taxes and in the effective tax rate for the three months ended June 27, 2020 as compared to the three months ended June 29, 2019 is primarily related to reversal of valuation allowances recorded against certain tax credits and loss carryforwards due to an increase in profitability in the corresponding jurisdictions in fiscal 2020. The decrease in provision for income taxes and the effective tax rate for the nine months ended June 27, 2020 as compared to the nine months ended June 29, 2019 is primarily related to reversal of valuation allowances recorded against certain tax credits and loss carryforwards due to an increase in profitability in the corresponding jurisdictions in fiscal 2020 and $10.2 million of provision for income taxes recorded

in the first and second quarter of fiscal 2019 as an adjustment to the U.S. one-time transition tax resulting from the enactment of the TCJA.

For the nine months ended June 27, 2020, the effective tax rate is lower than the U.S. federal statutory tax rate primarily due to tax benefits from foreign income earned in lower tax jurisdictions, tax incentives, and tax credits, partially offset by the foreign minimum tax, deemed dividends, valuation allowances recorded against certain loss carryforwards, foreign withholding taxes, and tax liabilities from foreign operations.