Income Taxes (Tables)

11 Months Ended

Oct. 02, 2015

Income Tax Disclosure [Abstract]

Income Tax Expense from Continuing Operations

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

In Thousands	2015			2014			2013
Current
U.S. Federal	$	11,045		$	27,243		$	25,716
State		492			1,732			3,978
Foreign		24,131			28,944			24,044
		35,668			57,919			53,738
Deferred
U.S. Federal		(7,686	)		(1,024	)		(2,257	)
State		(195	)		(10	)		(1,563	)
Foreign		(8,831	)		(13,169	)		(17,115	)
		(16,712	)		(14,203	)		(20,935	)
Income tax expense	$	18,956		$	43,716		$	32,803

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	2015		2014		2013
U.S.	$	43,592	$	101,803	$	97,902
Foreign		72,430		107,495		105,756
Earnings from continuing operations before income taxes	$	116,022	$	209,298	$	203,658

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	2015			2014
Reserves and liabilities	$	48,918		$	55,906
Loss carryforwards		49,667			261
Tax credit carryforwards		32,015			31,082
Employee benefits		12,316			13,086
Retirement benefits		17,055			10,431
Non-qualified stock options		11,908			11,063
Hedging activities		6,092			5,091
Other		2,176			856
Total deferred tax assets		180,147			127,776
Less valuation allowance		(42,694	)		(151	)
Total deferred tax assets, net of valuation allowance		137,453			127,625
Depreciation and amortization		(9,352	)		(15,925	)
Intangibles and amortization		(124,941	)		(136,116	)
Deferred costs		(5,779	)		(5,453	)
Other		(1,180	)		(1,083	)
Total deferred tax liabilities		(141,252	)		(158,577	)
Net deferred tax liabilities	$	(3,799	)	$	(30,952	)

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:

	2015			2014			2013
U.S. statutory income tax rate		35.0	%		35.0	%		35.0	%
Foreign taxes		-10.7	%		-7.6	%		-8.2	%
Difference in foreign tax rates		-5.2	%		-4.4	%		-3.8	%
Research & development credits		-5.1	%		-2.5	%		-4.3	%
Non-deductible under consent agreement		2.2	%		0.4	%		1.7	%
Domestic manufacturing deduction		-0.7	%		-1.3	%		-1.3	%
Net change in tax reserves		-0.2	%		0.1	%		-3.0	%
State income taxes		0.2	%		0.5	%		0.6	%
Change in foreign tax rates and laws		0.0	%		0.0	%		-1.5	%
Goodwill impairment		0.0	%		0.0	%		0.4	%
Other, net		0.8	%		0.7	%		0.6	%
Effective income tax rate		16.3	%		20.9	%		16.2	%

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
Unrecognized tax benefits as of October 31, 2014	$	11,227
Unrecognized gross benefit change:
Gross increase due to prior period adjustments		672
Gross increase due to current period adjustments		743
Gross decrease due to a lapse with taxing authorities		(2,059	)
Total change in unrecognized gross benefit		(644	)
Unrecognized tax benefits as of October 2, 2015	$	10,583
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	10,583
Statement of operations:
Total amount of interest income (expense) included in income tax expense	$	(37	)
Recognized in the statement of financial position:
Total amount of accrued interest included in income taxes payable	$	891

During the next 12 months, it is reasonably possible that approximately $0.9 million of previously unrecognized tax benefits related to operating losses and tax credits could decrease as a result of settlement of examinations and/or the expiration of statutes of limitations.  The Company recognizes interest related to unrecognized tax benefits in income tax expense.

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:

	Years No Longer
Tax Jurisdiction	Subject to Audit
U.S. Federal	2011 and prior
Canada	2007 and prior
France	2011 and prior
United Kingdom	2012 and prior