XML 28 R16.htm IDEA: XBRL DOCUMENT v3.21.1
Note 9 Income Tax
6 Months Ended
Apr. 03, 2021
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 April 3, 2021 and March 28, 2020 was $19 million (29% of income before taxes) and $6 million (56% of income before taxes), respectively, and $44 million (32% of income before taxes) and $21 million (32% of income before taxes) for the six months ended April 3, 2021 and March 28, 2020, respectively. Income tax expense for the three and six months ended April 3, 2021 increased, primarily as a result of an increase in income before tax and a change in the geographic mix of income before tax. The effective tax rate for the three months ended March 28, 2020 was negatively impacted by the COVID-19 global pandemic, resulting in reduced income and unfavorable jurisdictional mix.

It is reasonably possible that the Company's liability for uncertain tax positions could decrease materially during the quarter ending July 3, 2021 based upon the resolution of audits and expiration of statutes of limitations, which would result in a decrease in income tax expense at that time.