Reconciliations of the federal statutory tax rate to the effective tax rates

Reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate is as follows:


	Year Ended		Year Ended
	June 27, 2026		June 27, 2026

	($ in thousands, unless otherwise stated)
Tax expense at U.S. federal statutory income tax rate	$	98,162	21.0	%
State and local income tax, net of federal effect ⁽¹⁾		4,394	0.9
Foreign tax effects
Belgium:
Audit settlement		7,664	1.6
Other		(1,106)	(0.2)
Germany:
Effect of changes in tax laws or rates enacted in the current period		9,330	2.0
Changes in valuation allowances		6,837	1.5
Other		(1,959)	(0.4)
Japan:
Other		5,007	1.1
Malta:
Notional interest deduction		(9,917)	(2.1)
Statutory tax rate difference between Malta and United States		8,827	1.9
Other		(1,748)	(0.4)
Mexico:
Transfer pricing		10,763	2.3
Other		(1,978)	(0.5)
Other foreign jurisdictions		239	0.1
Effect of cross-border tax laws
Foreign-derived intangible income		(7,531)	(1.6)
Other		(182)	(0.0)
Changes in valuation allowances		990	0.2
Nontaxable or nondeductible items
Foreign translation gain		6,328	1.4
Transfer pricing		(9,112)	(2.0)
Other		2,118	0.5
Changes in unrecognized tax benefits		3,935	0.8
Other		1,986	0.4
Income tax expense		133,047	28.5

(1)	State taxes in Illinois, California, Texas, Pennsylvania, and Arizona made up the majority (greater than 50 percent) of the tax effect in this category.

Reconciliations of the U.S. federal statutory income tax rate to the effective income tax rates, prior to the adoption of ASU 2023-09, are as follows:


	June 28, 2025			June 29, 2024
U.S. federal statutory rate	21.0	%		21.0	%
State and local income taxes	1.3			0.9
Tax on foreign income ⁽¹⁾	(1.8)			(2.1)
Change in valuation allowances	8.1			0.8
Change in unrecognized tax benefit reserves	(4.8)			0.1
Tax audit settlements	3.6			0.3
Impact of tax attribute carryforwards	(26.2)			—
Other, net	2.9			0.1
Effective tax rate	4.1	%		21.1	%

(1)	Tax on foreign income represents the tax rate impact of the difference between foreign rates and the U.S. federal statutory rate applied to foreign income or loss and foreign income taxed in the U.S. at rates other than its statutory rate.

Reconciliation of the beginning and ending liability balances for unrecognized tax benefits


	June 27, 2026		June 28, 2025

	(Thousands)
Balance at beginning of year	$	92,578	$	100,661
Additions for tax positions taken in prior periods		3,321		1,078
Reductions for tax positions taken in prior periods		(326)		(7,159)
Additions for tax positions taken in current period		4,728		3,974
Reductions related to settlements with taxing authorities		(3,752)		(7,533)
Reductions related to the lapse of applicable statutes of limitations		(4,032)		(352)
Adjustments related to foreign currency translation		(645)		1,909
Balance at end of year	$	91,872	$	92,578