Income Taxes

9 Months Ended

Apr. 02, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded an income tax provision of $5,362 and $5,363 on income before income taxes of $20,997 and $28,928 for the third quarters ended April 2, 2021 and March 27, 2020, respectively. The Company recorded an income tax provision of $11,993 and $8,455 on income before income taxes of $56,112 and $66,943 for the nine months ended April 2, 2021 and March 27, 2020, respectively.

During the third quarters ended April 2, 2021 and March 27, 2020, the Company recognized a discrete tax benefit of $175 and $159, respectively, related to excess tax benefits on stock-based compensation. During the nine months ended April 2, 2021 and March 27, 2020, the Company recognized a discrete tax benefit of $2,785 and $6,639, respectively, related to excess tax benefits on stock-based compensation. The Company also recognized a discrete tax benefit of $1,005, net of $251 tax reserve, related to research and development credits and an $813 discrete tax benefit from a release of a valuation allowance on a capital loss carryforward, during the third quarter and nine months ended March 27, 2020.

The effective tax rate for the third quarter and nine months ended April 2, 2021 differed from the Federal statutory rate primarily due to Federal and State research and development credits, excess tax benefits related to stock-based compensation, non-deductible compensation and state taxes.

The effective tax rate for the third quarter and nine months ended March 27, 2020 differed from the Federal statutory rate primarily due to Federal research and development credits, excess tax benefits related to stock-based compensation, a release of a valuation allowance on a capital loss carryforward, a modified territorial tax system and a minimum tax on certain foreign earnings, and state taxes.

During the third quarter ended April 2, 2021, there were no material changes to the Company's unrecognized tax positions.