Income Taxes

3 Months Ended

Jun. 28, 2024

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The Company recorded the following tax provision in its unaudited condensed consolidated statements of operations:

	Three-Month Period Ended
	June 28, 2024			June 30, 2023
Provision for income taxes	$	1,040		$	7,215
Effective tax rate		(6.3	)%		10.6	%

The Company’s provision for income taxes is composed of the year-to-date taxes based on an estimate of the annual effective tax rate plus the tax impact of discrete items.

The Company is subject to tax in the U.S. and various foreign jurisdictions. The Company’s effective income tax rate fluctuates primarily because of the change in the mix of its U.S. and foreign income, the impact of discrete transactions and law changes, state tax impacts and tax benefits generated by the foreign derived intangible income (“FDII”) deduction, including permanent impacts of Internal Revenue Code Section 174 Capitalization (“174 Capitalization”), and research credits; offset by non-deductible stock-based compensation charges.

The decline in the effective tax rate (“ETR”) year-over-year relates primarily to the change in (Loss) Income before income taxes, the impact of FDII benefits and research credits; offset by non-deductible stock-based compensation charges and tax expense from discrete transactions.