INCOME TAX EXPENSE

9 Months Ended

Mar. 28, 2021

Income Tax Disclosure [Abstract]

INCOME TAX EXPENSE

INCOME TAX EXPENSE

The Company’s provision for income taxes and effective tax rate are as follows:

	Three Months Ended						Nine Months Ended
	March 28, 2021			March 29, 2020			March 28, 2021			March 29, 2020
	(in thousands, except percentages)
Income tax expense	$	88,867		$	54,714		$	298,242		$	271,729
Effective tax rate	7.7		%	8.7		%	9.7		%	14.9		%

The difference between the U.S. federal statutory tax rate of 21% and the Company’s effective tax rate for the three and nine months ended March 28, 2021 and the three and nine months ended March 29, 2020 was primarily due to income in lower tax jurisdictions, stock-based compensation excess tax benefits, and a cumulative income tax benefit reversal due to a court ruling in the nine months ended March 29, 2020.

The Internal Revenue Service (“IRS”) is examining the Company’s U.S. federal income tax return for the fiscal year ended June 24, 2018. As of March 28, 2021, no significant adjustments have been proposed by the IRS. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the IRS will occur.

The Company is in various stages of examinations in connection with all of its tax audits worldwide, and it is difficult to determine when these examinations will be settled. It is reasonably possible that over the next 12-month period the Company may experience an increase or decrease in its uncertain tax positions as a result of tax examinations or lapses of statutes of limitations. The change in uncertain tax positions as a result of lapses of statutes of limitations may range up to $7.4 million.