Note 9 Income Tax

9 Months Ended

Jul. 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 (benefit from) income taxes for the three months ended July 3, 2021 and June 27, 2020 was $(18) million ((19)% of income before taxes) and $15 million (25% of income before taxes), respectively. The income tax benefit for the three months ended July 3, 2021 included the recognition of a $43 million tax benefit that resulted from the release of certain foreign tax reserves due to lapse of time and expiration of statutes of limitations.

The Company's provision for income taxes for the nine months ended July 3, 2021 and June 27, 2020 was $25 million (11% of income before taxes) and $36 million (29% of income before taxes), respectively. Income tax expense for the nine months ended July 3, 2021 decreased primarily due to the recognition of the $43 million tax benefit resulting from the release of certain foreign tax reserves.