Income taxes

3 Months Ended

Oct. 03, 2026

Income taxes

Income taxes

7. Income taxes

The following 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 24.1% in the first quarter of fiscal 2027. During the first quarter of fiscal 2027, the Company’s effective tax rate was unfavorably impacted primarily by (i) the mix of income in higher tax jurisdictions, and (ii) U.S. state taxes.

During the first quarter of fiscal 2026, the Company’s effective tax rate on its income before taxes was 32.6%, and it 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.