(15) Income Taxes
On July 4,
2025, legislation known
as the One
Big Beautiful Bill
Act (OBBBA)
was signed
into law.
The OBBBA makes
changes to
the
United
States
corporate
income
tax
system,
including,
among
other
provisions,
the
immediate
expensing
of
research
and
development expenditures,
and 100 percent
bonus depreciation on
qualified property.
The impacts of
the OBBBA are
reflected in our
results for
the quarter
ended August
24, 2025,
and there
was no
material impact
to our
income tax
expense. As
of the
quarter ended
August 24,
2025, we
expect certain
provisions of
the OBBBA
will change
the timing
of cash
tax payments
in the
current fiscal
year
and future periods.
In
December
2021,
the
Organization
for
Economic
Cooperation
and
Development
(OECD)
established
a
framework,
referred
to
as
Pillar
2,
designed
to
ensure
large
multinational
enterprises
pay
a
minimum
15
percent
level
of
tax
on
the
income
arising
in
each
jurisdiction
in
which
they
operate.
Numerous
countries
have
already
enacted
the
OECD
model
rules
effective
for
taxable
years
beginning
after
December
31,
2023,
which
for
us
was
fiscal
2025.
There
was
no
material
impact
on
our
consolidated
financial
statements.
Several
other
countries
have
enacted
or
drafted
legislation
that
is
not
yet
effective
for
us,
and
we
do
not
expect
this
legislation
to
have
a
material
impact
on
our
consolidated
financial
statements.
We
will
continue
to monitor
for
new
legislation
and
guidance and evaluate potential impact on our consolidated financial
statements.
During the
second quarter
of fiscal
2024, we
received a
notice of
proposed adjustment
from the
Internal Revenue
Service associated
with a capital loss
from fiscal 2019.
We
believe that we
have meritorious defenses
against this assessment
and will vigorously
defend
our
position. We
do
not
expect
the
resolution
of
the
proposed
adjustment
to
have
a
material
impact
on
our
financial
position
or
liquidity.