XML 29 R13.htm IDEA: XBRL DOCUMENT v3.4.0.3
Income Taxes
6 Months Ended
Apr. 01, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8 – Income Taxes

The income tax rate was 16.6% in the second fiscal quarter of 2016 compared with 18.6% in the prior-year period.  In the second fiscal quarter of 2016, the Company recognized $0.3 million of discrete tax benefits due to income tax return to provision adjustments. In the second fiscal quarter of 2015, the Company recognized $0.5 million of discrete tax expense principally related to the following two items.  The first item was a $2.0 million tax expense due to income tax return to provision adjustments.  The second item was approximately $1.5 million of discrete tax benefits due to the retroactive extension of the U.S. federal research and experimentation credits.  The income tax rate differed from the statutory rate in the second fiscal quarter of 2016 and 2015, as both years benefited from various tax credits and certain foreign interest expense deductions.

The income tax rates were 11.0% and 21.9% for the first six months of fiscal 2016 and 2015, respectively.  In the first six months of 2016, the Company recognized $2.2 million of discrete tax benefits principally related to the following items.  The first item was a $1.3 million reduction of net deferred income tax liabilities as a result of the enactment of tax laws reducing the U.K. statutory income tax rate.  The second item was approximately $1.3 million of discrete tax benefits due to the retroactive extension of the U.S. federal research and experimentation credits.  The third item was a $0.4 million tax expense due to income tax return to provision adjustments.  In the first six months of 2015, the Company recognized approximately $0.2 million of discrete tax benefits principally related to the following two items.  The first item was approximately $1.5 million of discrete tax benefits due to the retroactive extension of the U.S. federal research and experimentation credits.  The second item was a $1.3 million tax expense due to income tax return to provision adjustments.  The income tax rate differed from the statutory rate in the first six months of fiscal 2016 and 2015, as both years benefited from various tax credits and certain foreign interest expense deductions.

It is reasonably possible that within the next twelve months approximately $1.1 million of tax benefits that are currently unrecognized could be recognized as a result of settlement of examinations and/or the expiration of applicable statutes of limitations.