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Income Taxes
3 Months Ended
Jan. 27, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
In accordance with FASB Accounting Standards Codification 740, Income Taxes, each interim period is considered integral to the annual period and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its best estimate of the annual effective tax rate for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, as adjusted for discrete taxable events that occur during the interim period. If, however, the entity is unable to reliably estimate its annual effective tax rate due to the Company’s inability to forecast income by jurisdiction or as a result of rate volatility caused by minor changes in income when projecting near break-even earnings, then the actual effective tax rate for the year-to-date period may be the best annual effective tax rate estimate. For the quarters ended January 27, 2017 and January 29, 2016, the Company determined that the estimated annual effective rate method would not provide a reliable estimate due to the volatility of income tax benefit resulting from modest changes in forecasted annual pre-tax results. Therefore, the Company recorded a tax benefit for the quarters ended January 27, 2017 and January 29, 2016 based on the actual effective rate (i.e., the “cut-off” method).
For the quarter ended January 27, 2017, the Company recorded a benefit for income taxes of $12.5 million that resulted in an effective tax rate of 97.8%. A net discrete tax benefit of $11.6 million was recorded in the first quarter of fiscal 2017 primarily resulting from tax benefits in connection with the Company's footprint rationalization activities. For the quarter ended January 29, 2016, the Company recorded a benefit for income taxes of $17.0 million that resulted in an effective tax rate of 29.7%. A net discrete tax benefit of $0.8 million was recorded in the first quarter of fiscal 2016.