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Income Taxes
9 Months Ended
Aug. 25, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"), which significantly changed U.S. tax law. The Tax Act lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective on November 26, 2018. Beginning the first quarter of 2019, the Company's effective tax rate reflected a provision to tax Global Intangible Low-Taxed Income ("GILTI") of foreign subsidiaries and a tax benefit for Foreign Derived Intangible Income ("FDII"). The Company accounted for GILTI in the period in which it is incurred.
The effective income tax rate was 18.0% for the three months ended August 25, 2019, compared to 7.4% for the same prior-year period. The increase in the effective tax rate was driven by less discrete tax benefits in 2019 as compared to 2018, including 4.8% ($6.5 million) from a less favorable true-up of book-tax adjustments upon finalization of the U.S. tax return, and a 5.1% ($7.1 million) in 2018 mostly from the re-measurement of the Company's deferred tax assets and liabilities subject to the Tax Act rate reduction. There was also a 3.4% ($4.7 million) tax benefit in the prior year period attributable to exercising stock-based equity awards.
The Company's effective income tax rate was 16.7% for the nine months ended August 25, 2019, compared to 48.4% for the same prior-year period. The decrease in the effective tax rate in 2019 as compared to 2018 was primarily driven by a 36% ($129.6 million) one-time tax charge in 2018 related to the impact of the Tax Act. Of the impact, 25% ($91.5 million) was due to remeasurement of deferred tax assets and liabilities and 11% ($38.1 million) was related to transition charges on undistributed foreign earnings.