Income Taxes

3 Months Ended

Dec. 02, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our income tax (provision) benefit consisted of the following:

Three months ended	December 2, 2021			December 3, 2020
Income before taxes	$	2,521		$	841
Income tax (provision) benefit	(219)			(51)
Effective tax rate	8.7		%	6.1		%

We operate in a number of jurisdictions outside the United States, including Singapore, where we have tax incentive arrangements. These incentives expire, in whole or in part, at various dates through 2034 and are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements reduced our tax provision by $290 million (benefiting our diluted earnings per share by $0.26) for the first quarter of 2022, and by $56 million ($0.05 per diluted share) for the first quarter of 2021.

As of December 2, 2021, gross unrecognized tax benefits were $680 million, substantially all of which would affect our effective tax rate in the future, if recognized. Amounts accrued for interest and penalties related to uncertain tax positions were not significant for any period presented. We are currently under audit by the U.S. Internal Revenue Service for our 2018 and 2019 tax years. We believe that adequate amounts of taxes and related interest and penalties have been provided.