Note 9 Income Tax

6 Months Ended

Apr. 02, 2022

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Tax

The Company estimates its annual effective income tax rate at the end of each quarterly period. The estimate takes into account the geographic mix of expected pre-tax income (loss), expected total annual pre-tax income (loss), enacted changes in tax laws, implementation of tax planning strategies and possible outcomes of audits and other uncertain tax positions. To the extent there are fluctuations in any of these variables during a period, the provision for income taxes may vary.

The Company's provision for income taxes for the three months ended April 2, 2022 and April 3, 2021 was $23 million (30% of income before taxes) and $19 million (29% of income before taxes), respectively, and the Company’s provision for income taxes for the six months ended April 2, 2022 and April 3, 2021 was $43 million (28% of

income before taxes) and $44 million (32% of income before taxes), respectively. The tax rate was lower for the six months ended April 2, 2022 compared to the six months ended April 3, 2021 due to a $3 million decrease in unfavorable discrete items.

It is reasonably possible that the Company's liability for uncertain tax positions could decrease materially during the quarter ending July 2, 2022 based upon the resolution of audits and expiration of statutes of limitations, which would result in a decrease in income tax expense at that time.