Note 9 Income Tax

9 Months Ended

Jul. 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 (benefit from) income taxes for the three months ended July 2, 2022 and July 3, 2021 was $2 million (3% of income before taxes) and $(18) million ((19)% of income before taxes), respectively. The income tax expense (benefit) for the three months ended July 2, 2022 and July 3, 2021 included the recognition of tax benefits of approximately $15 million and $43 million, respectively, that resulted from the release of certain foreign tax reserves due to lapse of time and expiration of statutes of limitations.

The Company’s provision for income taxes for the nine months ended July 2, 2022 and July 3, 2021 was $46 million (19% of income before taxes) and $25 million (11% of income before taxes), respectively. The tax rate was higher for the nine months ended July 2, 2022 compared to the nine months ended July 3, 2021 due to a $20 million decrease in favorable discrete items in 2022 as compared to 2021.