Income Taxes

6 Months Ended

Nov. 26, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate for continuing operations for the quarter ended November 26, 2023 and November 27, 2022 was 12.1 percent. The effective income tax rate for continuing operations for the six months ended November 26, 2023 was 12.4 percent compared to an effective income tax rate for the six months ended November 27, 2022 of 13.0 percent. This change was primarily driven by the impact of federal tax credits.

Included in our remaining balance of unrecognized tax benefits is $8.3 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. The impact of the IRA excise tax and CAMT are immaterial to our consolidated financial statements for the quarter and six months ended November 26, 2023.