Income Taxes

9 Months Ended

Feb. 26, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate for continuing operations for the quarter ended February 26, 2023 was 13.2 percent compared to an effective income tax rate for the quarter ended February 27, 2022 of 12.5 percent. This change was primarily driven by higher net earnings from continuing operations. The effective income tax rate for continuing operations for the nine months ended February 26, 2023 was 13.0 percent compared to an effective income tax rate for the nine months ended February 27, 2022 of 13.1 percent. This change was primarily driven by the impact of federal tax credits and lower net earnings from continuing operations.

Included in our remaining balance of unrecognized tax benefits is $6.1 million related to tax positions for which it is reasonably possible that the total amounts could change within the next twelve months based on the outcome of examinations or as a result of the expiration of the statute of limitations for specific jurisdictions.

The Inflation Reduction Act (“IRA”) was enacted on August 16, 2022. The IRA includes provisions imposing a 1 percent excise tax on share repurchases that occur after December 31, 2022 and introduces a 15 percent corporate alternative minimum

tax (“CAMT”) on adjusted financial statement income. We currently are not expecting either the new IRA excise tax or CAMT provisions to have a material adverse impact to our financial statements.