Income Taxes |
3 Months Ended |
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Dec. 28, 2024 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Note 9—Income Taxes
Our effective income tax rate was 19.7% for the three months ended December 28, 2024, compared to 26.1% for the three months ended December 30, 2023. The differences between the statutory rate and our effective rate for the three months ended December 28, 2024 were primarily attributable to state taxes and change in valuation allowance related to our interest expense limitation. The difference between the statutory rate and our effective rate for the three months ended December 30, 2023 was primarily attributable to state taxes. Our effective income tax rate can fluctuate due to factors including valuation allowances, changes in tax laws, federal and state audits, and the impact of other discrete items.
For the three months ended December 28, 2024, we utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes—Interim Reporting,” to calculate our interim income tax provision. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. The Company believes that the use of this discrete method is more appropriate than the annual effective tax rate method due to the sensitivity of tax adjustments to marginal pre-tax book profitability anticipated for the year. |
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- References No definition available.
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- Definition The entire disclosure for income tax. Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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