Income Taxes

6 Months Ended

Apr. 03, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense for the three and six months ended April 3, 2021 was $4.7 million and $10.1 million, respectively, compared to $1.2 million and $4.4 million for the three and six months ended April 4, 2020, respectively.

The effective tax rates for the three and six months ended April 3, 2021 was 10.1% and 11.5%, respectively, compared to the effective tax rates of 8.2% and 9.1% for the three and six months ended April 4, 2020. The effective tax rate for the three and six months ended April 3, 2021 increased from the effective tax rate for the three and six months ended April 4, 2020, primarily due to a net $0.8 million benefit for special tax items during the three months ended January 4, 2020, as well as a change in the geographic distribution of pre-tax book income for the three and six months ended April 3, 2021. The increase in the effective tax rate was partially offset by a tax benefit of $0.9 million recognized for the three months ended April 3, 2021 related to the release of a full valuation allowance for a jurisdiction within the EMEA segment related to a settlement of an income tax audit.

There were no material additions to the amount of unrecognized tax benefits recorded for uncertain tax positions as of April 3, 2021. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three and six months ended April 3, 2021 was not material.

One or more uncertain tax positions may be settled within the next 12 months. Settlement of these matters is not expected to have a material effect on the Company's consolidated results of operations, financial position and cash flows. The Company is not currently under examination by taxing authorities in the U.S. The Company is under audit in various foreign jurisdictions but settlement is not expected to have a material impact.

The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended April 3, 2021, the Company released a full valuation allowance for a jurisdiction within the EMEA segment related to the settlement of an income tax audit. The Company continues to record a full valuation allowance against its net deferred tax assets in certain jurisdictions within the EMEA segment and a partial valuation against its net deferred tax assets in certain jurisdictions within the AMER segment, as it was more likely than not that these assets would not be fully realized based primarily on historical performance. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward until it determines it is more likely than not that the deferred tax assets will be realized.