Income Taxes

3 Months Ended

Jan. 01, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rates for the first three months of fiscal 2023 and 2022 were 24.5% and 18.8%, respectively. Income tax expense was reduced by $1.7 million and $4.5 million of excess tax benefits on share-based payments in the first quarters of fiscal 2023 and 2022, respectively. Excluding the impact of the excess tax benefits on share-based payments, our effective tax rates in the first quarters of fiscal 2023 and 2022 were 25.7% and 24.1%, respectively.

At January 1, 2023 and October 2, 2022, the liability for income taxes associated with uncertain tax positions was $10.8 million and $10.6 million, respectively. These uncertain tax positions substantially relate to ongoing examinations. It is reasonably possible that these liabilities may decrease within the next 12 months as certain examinations are resolved. These liabilities represent our current estimates of the additional tax liabilities that we may be assessed when the related audits are concluded. If these audits are resolved in a manner more unfavorable than our current expectations, our additional tax liabilities could be materially higher than the amounts currently recorded resulting in additional tax expense.