XML 30 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
INCOME TAXES
9 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
The Company’s effective tax rate was 22.2% and 21.0% for the three months ended June 30, 2017 and July 1, 2016, respectively, and 25.6% and 22.4% for the nine months ended June 30, 2017 and July 1, 2016, respectively.
The increase in the Company’s effective tax rate during the three months ended June 30, 2017, compared to the year-ago period, was primarily due to a shift in the geographic mix of earnings.
The increase in the Company's effective tax rate during the nine months ended June 30, 2017, compared to the year-ago period was primarily due to the impairment of the CPTC loans in December 2016, which were made by one of our Swiss subsidiaries, which has a low tax rate, and a significant portion of the expense associated with the allowance for doubtful accounts recorded in the period being attributable to one of our German subsidiaries, which has a full valuation allowance.
The Company’s effective income tax rate differs from the U.S. federal statutory rate primarily because the Company’s foreign earnings are taxed at rates that are, on average, lower than the U.S. federal rate, and because the Company’s domestic earnings are subject to state income taxes. The total amount of unrecognized tax benefits did not materially change during the nine months ended June 30, 2017; however, the amount of unrecognized tax benefits has increased as a result of positions taken during the current and prior years, and has decreased as the result of the expiration of the statutes of limitation in various jurisdictions.