Income Taxes (Tables)

12 Months Ended

Oct. 25, 2013

Income Tax Expense from Continuing Operations

Income tax expense from continuing operations for each of the fiscal years consisted of:

In Thousands	2013			2012			2011
Current
U.S. Federal		$       27,364			$       33,790			$       14,817
State		4,147			356			2,994
Foreign		22,993			21,222			19,472
		54,504			55,368			37,283
Deferred
U.S. Federal		(5,027	)		(4,578	)		8,332
State		(1,592	)		793			205
Foreign		(17,800	)		(21,625	)		(20,882	)
		(24,419	)		(25,410	)		(12,345	)
Income tax expense		$       30,085			$       29,958			$       24,938

U.S. and Foreign Components of Earnings from Continuing Operations Before Income Taxes

U.S. and foreign components of earnings from continuing operations before income taxes for each of the fiscal years were:

In Thousands	2013		2012		2011
U.S.		$       96,105		$     108,436		$     110,798
Foreign		101,744		35,097		47,684
Earnings from continuing operations, before income taxes		$     197,849		$     143,533		$     158,482

Components of Deferred Tax Assets (Liabilities)

Primary components of the Company’s deferred tax assets (liabilities) at the end of the fiscal years resulted from temporary tax differences associated with the following:

In Thousands	2013			2012
Reserves and liabilities		$       60,397			$       58,510
NOL carryforwards		879			725
Tax credit carryforwards		29,862			26,687
Employee benefits		14,974			17,524
Retirement benefits		2,759			25,379
Non-qualified stock options		12,618			13,220
Other		650			600
Total deferred tax assets		122,139			142,645
Depreciation and amortization		(18,969	)		(18,024	)
Intangibles and amortization		(173,524	)		(182,921	)
Deferred costs		(4,535	)		(5,981	)
Hedging activities		(22	)		(111	)
Other		(1,398	)		(1,979	)
Total deferred tax liabilities		(198,448	)		(209,016	)
Net deferred tax liabilities		$      (76,309	)		$      (66,371	)

Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate for each of the fiscal years was as follows:

	2013			2012			2011
U.S. statutory income tax rate		35.0	%		35.0	%		35.0	%
State income taxes		0.7			0.7			1.4
Foreign taxes		(11.3	)		(14.8	)		(10.6	)
Goodwill impairment		0.6			12.7			0.0
Penalties		1.8			0.0			0.0
Difference in foreign tax rates		(1.1	)		(2.3	)		(0.2	)
Domestic manufacturing deduction		(1.4	)		(2.3	)		(1.3	)
Research & development credits		(3.7	)		(3.4	)		(5.5	)
Net change in tax reserves		(3.0	)		0.5			(2.4	)
Valuation allowance		0.0			(1.0	)		(3.0	)
Change in foreign tax rates and laws		(1.7	)		(3.6	)		(2.2	)
Acquisition and organizational restructuring		0.0			0.0			3.0
Other, net		(0.7	)		(0.6	)		1.5
Effective income tax rate		15.2	%		20.9	%		15.7	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

In Thousands	Total
Unrecognized tax benefits as of October 26, 2012	$	14,979
Unrecognized gross benefit change:
Gross increases due to prior-period adjustments		538
Gross (decrease) due to prior-period adjustments		(1,287	)
Gross increases due to current-period adjustment		4,260
Gross (decrease) due to current-period adjustment		0
Gross (decrease) due to settlements with taxing authorities		(888	)
Gross (decrease) due to a lapse with taxing authorities		(5,594	)
Total change in unrecognized gross benefit		(2,971	)
Unrecognized tax benefits as of October 25, 2013	$	12,008
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	12,008
Statement of operations:
Total amount of interest income (expense) included in income tax expense	$	1,154
Recognized in the statement of financial position:
Total amount of accrued interest included in income taxes payable	$	876

Income Tax Examinations by Tax Authorities in its Major Tax Jurisdictions

The Company is no longer subject to income tax examinations by tax authorities in its major tax jurisdictions as follows:

Tax Jurisdiction	Years No Longer       Subject to Audit
U.S. Federal	2007 and prior
Canada	2005 and prior
France	2009 and prior
United Kingdom	2010 and prior