Income Taxes

3 Months Ended

Dec. 03, 2020

Our income tax (provision) benefit consisted of the following:


Three months ended	December 3, 2020			November 28, 2019

Income before taxes	$	841		$	561
Income tax (provision) benefit	(51)			(55)
Effective tax rate	6.1		%	9.8		%

We operate in a number of jurisdictions outside the United States, including Singapore, where we have tax incentive arrangements. These incentives expire, in whole or in part, at various dates through 2034 and are conditional, in part, upon meeting certain business operations and employment thresholds. The effect of tax incentive arrangements reduced our tax provision by $56 million (benefiting our diluted earnings per share by $0.05) for the first quarter of 2021 and were not significant to our tax provision for the first quarter of 2020.

As of December 3, 2020, gross unrecognized tax benefits were $415 million, substantially all of which would affect our effective tax rate in the future, if recognized. Amounts accrued for interest and penalties related to uncertain tax positions were not significant for any period presented.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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