Income Taxes

6 Months Ended

May 28, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company's effective income tax rate was 78.4% for the three months ended May 28, 2023, compared to 36.1% for the same prior-year period. The increase in effective tax rate in the current quarter is primarily driven by the inclusion of discrete tax benefits recognized on $7.2 million of losses before income taxes. The effective tax rate for the three months ended May 29, 2022 included non-deductible charges related to the Russia-Ukraine crisis.

The Company's effective income tax rate was 14.3% for the six months ended May 28, 2023, compared to 24.1% for the same prior-year period. The decrease in the effective tax rate was primarily driven by higher tax benefits in the current year from incentive tax deductions related to intellectual property income, and the reversal of deferred tax liabilities on a foreign branch as a result of newly-effective U.S. foreign tax credit regulations. Additionally, the prior year rate included non-deductible charges related to the Russia-Ukraine crisis.