Note 10 Income Tax

6 Months Ended

Mar. 28, 2020

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Tax

The Company estimates its annual effective income tax rate at the end of each quarterly period. The estimate takes into account the geographic mix of expected pre-tax income (loss), expected total annual pre-tax income (loss), enacted changes in tax laws, implementation of tax planning strategies and possible outcomes of audits and other uncertain tax positions. To the extent there are fluctuations in any of these variables during a period, the provision for income taxes may vary.

The Company's provision for income taxes for the three months ended March 28, 2020 and March 30, 2019 was $6 million (56% of income before taxes) and $28 million (41% of income before taxes), respectively, and $21 million (32% of income before taxes) and $54 million (41% of income before taxes) for the six months ended March 28, 2020 and March 30, 2019, respectively. Income tax expense for the three and six months ended March 28, 2020 decreased primarily as a result of lower income before tax, a change in the geographic mix of income before tax and the impact of a tax-related restructuring transaction that became effective in the fourth quarter of 2019.