Income Taxes

6 Months Ended

Apr. 27, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings.

Our effective tax rates for the second quarter of fiscal 2025 and 2024 were 8.0 percent and 13.6 percent, respectively. The effective tax rate for the second quarter of fiscal 2025 was lower than the same period in the prior fiscal year, primarily due to a reduction of unrecognized tax benefits related to foreign operations as a result of the lapse of statutes of limitations.

Our effective tax rates for the first six months of fiscal 2025 and 2024 were 25.2 percent and 12.9 percent, respectively. The effective tax rate for the first six months of fiscal 2025 was higher than the same period in the prior fiscal year, primarily due to a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore, partially offset by a reduction of unrecognized tax benefits related to foreign operations as a result of the lapse of statutes of limitations.