Income taxes

3 Months Ended

Sep. 27, 2025

Income taxes

Income taxes

7. Income taxes

The below discussion of the effective tax rate for the periods presented in the consolidated statements of operations is in comparison to the 21% U.S. statutory federal income tax rate.

The Company’s effective tax rate on its income before taxes was 32.6% in the first quarter of fiscal 2026. During the first quarter of fiscal 2026, the Company’s effective tax rate was unfavorably impacted primarily by (i) the effect of

changes in tax rates enacted in foreign jurisdictions, and (ii) increases to unrecognized tax benefit reserves net of settlements.

During the first quarter of fiscal 2025, the Company’s effective tax rate on its income before taxes was 21.1%. During the first quarter of fiscal 2025, the Company’s effective tax rate was unfavorably impacted primarily by (i) increases to unrecognized tax benefit reserves and audit settlements, (ii) the mix of income in higher tax jurisdictions, and (iii) increases to valuation allowances, partially offset by (iv) increases in tax attribute carryforwards.

On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (the “OBBB”). The bill includes extensions of current tax provisions and makes many significant tax changes. Most of the provisions enacted by the OBBB take effect in fiscal year 2025 to 2027. The company expects no material adverse impact related to the OBBB in fiscal 2026; however, the Company will continue to monitor developments and update the potential impacts on its consolidated financial statements as new information becomes available.