INCOME TAXES

9 Months Ended

Apr. 03, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

8. INCOME TAXES

The Company’s consolidated interim effective tax rate is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. The differences between the Company’s effective tax rates and the statutory federal tax rate of 21.0% primarily relate to the inclusion of the state tax rate in the overall effective rate, the benefit of federal and state credits, and a permanent benefit associated with the foreign derived intangible income deduction, partially offset by a permanent add-back for Section 162(m) limitations. During the three months ended April 3, 2022 and April 4, 2021, the Company’s effective tax rate was 22.9% and 19.4%, respectively.  During the nine months ended April 3, 2022 and April 4, 2021, the Company’s effective tax rate was 23.4% and 21.2%, respectively. The Company’s effective tax rate for the three and nine months ended April 3, 2022 is higher compared to the effective tax rate for the three and nine months ended April 4, 2021, primarily due to an increase in the tax impact of uncertain state tax positions and the increase in the effective state tax rate.