Income Taxes

9 Months Ended

Aug. 28, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company's effective income tax rate was 7.2% for the three months ended August 28, 2022, compared to 4.8% for the same prior-year period. The lower effective tax rates in both years were primarily driven by the planned execution of certain tax transactions, with the current year including a lower tax benefit as compared to the prior year.

The Company's effective income tax rate was 17.9% for the nine months ended August 28, 2022, compared to 3.1% for the same prior-year period. The increase in the effective tax rate was primarily driven by lower tax benefits from the foreign-derived intangible income deduction from internal restructuring and stock-based compensation equity awards as compared to the same prior-year period, as well as an increase resulting from non-deductible charges related to the Russia-Ukraine crisis.

On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA contains a number of revisions to the Internal Revenue Code, including a 15% corporate minimum income tax and a 1% excise tax on corporate stock repurchases in tax years beginning after December 31, 2022. While these tax law changes have no immediate effect and are not expected to have a material adverse effect on our results of operations going forward, we will continue to evaluate its impact as further information becomes available.