Income Taxes

6 Months Ended

Oct. 26, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate for the three months ended October 26, 2024 was 24.9% compared to 25.3% for the three months ended October 28, 2023. The change in the rate was primarily due to the benefit of purchased transferable federal tax credits.

The effective income tax rate for the six months ended October 26, 2024 and October 28, 2023 was 24.5%. The rate was impacted by a favorable income tax reserve adjustment offset by excess tax benefits associated with stock-based compensation.

The Organization for Economic Cooperation and Development (“OECD”) has published a framework to implement a global minimum income tax rate of 15% through its Base Erosion and Profit Shifting Pillar Two project (“BEPS Pillar Two”). This new legislation became effective in certain countries where the Company operates starting in fiscal 2025. We continue to evaluate the impact of this new legislation. At this time, we do not expect the impact of this legislation to be material to our effective tax rate.