Income Taxes

9 Months Ended

Jun. 27, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rates for the first nine months of fiscal 2021 and 2020 were 20.4% and 21.2%, respectively. Income tax expense was reduced by $8.7 million and $7.0 million of excess tax benefits on share-based payments in the first nine months of fiscal 2021 and 2020, respectively. Excluding the impact of the excess tax benefits on share-based payments, our effective tax rates in the first nine months fiscal 2021 and 2020 were 25.0% and 25.4%, respectively.

As of June 27, 2021 and September 27, 2020, the liability for income taxes associated with uncertain tax positions was $12.8 million and $9.7 million, respectively. These uncertain tax positions substantially relate to ongoing examinations, which are not likely to be resolved within the next 12 months. These liabilities represent our current estimates of the additional tax liabilities that we may be assessed when the related audits are concluded. If these audits are resolved in a manner more unfavorable than our current expectations, our additional tax liabilities could be materially higher than the amounts currently recorded resulting in additional tax expense.