Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.25.1
Income Taxes
 6 Months Ended
Mar. 29, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 9—Income Taxes

 

Our effective income tax rate was 19.9% for the six months ended March 29, 2025, compared to 27.5% for the six months ended March 30, 2024. The differences between the statutory rate and our effective rate for the six months ended March 29, 2025 were primarily attributable to state taxes and changes in the valuation allowance related to our interest expense limitation. The difference between the statutory rate and our effective rate for the six months ended March 30, 2024 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 six months ended March 29, 2025, we utilized the discrete effective tax rate method, as allowed by 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.