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INCOME TAXES
3 Months Ended
Jul. 03, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company and its subsidiaries are subject to taxation in the U.S. and in various foreign and state jurisdictions. The Company's income tax benefit is determined using an estimate of its annual effective tax rate and adjusted for discrete items that are taken into account in the relevant period. The effective tax rates for the three months ended July 3, 2021 and June 27, 2020 were 10.4% and 4.1%, respectively.

Income tax benefit was $(4.3) million and $(3.2) million for the three months ended July 3, 2021 and June 27, 2020, respectively. The provision for income taxes for the three months ended July 3, 2021 consisted primarily of federal, state, and foreign income taxes. For the three months ended July 3, 2021 and June 27, 2020, the income tax benefit differed from the U.S. federal statutory rate primarily due the valuation allowance on the U.S. federal and state deferred tax assets.

As of July 3, 2021, the Company continued to maintain a full valuation allowance against its U.S. federal and state deferred tax assets ("DTAs.") A significant portion of the Company's DTAs relate to internal intangible property restructuring between wholly-owned subsidiaries. At this time, based on evidence currently available, the Company considers it more likely than not that it will have sufficient taxable income in the future that will allow the Company to realize the DTAs; however, failure to generate sufficient future taxable income could result in some or all DTAs not being utilized in the future. If the Company is unable to generate sufficient future taxable income, a substantial valuation allowance to reduce the Company's DTAs may be required.
The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. Significant judgment is required in evaluating our uncertain tax positions and determining the Company's provision for income taxes. During the three months ended July 3, 2021, there were no material changes to the total amount of unrecognized tax benefits.