Income Taxes

9 Months Ended

Jun. 01, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

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

	Quarter ended						Nine months ended
	June 1, 2023			June 2, 2022			June 1, 2023			June 2, 2022
Income (loss) before taxes	$	(1,753)		$	2,988		$	(4,200)		$	8,018
Income tax (provision) benefit	(139)			(358)			(201)			(832)
Effective tax rate	(7.9)		%	12.0		%	(4.8)		%	10.4		%

The changes in our effective tax rate for the third quarter and first nine months of 2023 as compared to the corresponding periods of 2022 were primarily due to pre-tax losses incurred in the first nine months of 2023. Despite a consolidated pre-tax loss on a worldwide basis, we have taxes payable in certain geographies due to minimum taxable income reportable in those geographies.

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. As a result of a loss before taxes and geographic mix of income, the benefit from tax incentive arrangements was not material for the third quarter and first nine months of 2023. These arrangements reduced our tax provision by $361 million (benefiting our diluted earnings per share by $0.32) and $955 million ($0.85 per diluted share) for the third quarter and first nine months of 2022, respectively.