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Income Taxes
9 Months Ended
Jul. 01, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8 – Income Taxes

The effective tax rates for the three and nine months ended July 1, 2016, were 17.2% and 14.7%, respectively. The effective tax rates for the three and nine months ended June 26, 2015, were 19.2% and 21.1%, respectively.  The effective tax rates were lower than the U.S. federal statutory rate due to various tax credits, certain foreign interest expense deductions and lower income tax rates on permanently invested foreign sourced income.

The decrease in the three and nine months ended July 1, 2016, effective tax rate compared to prior year periods was primarily due to an adjustment for non-deductible expense from the Consent Agreement with DDTC.  As noted in Note 10 – Commitments and Contingencies, the Consent Agreement required a payment of $20 million, $10 million of which was suspended and eligible for offset credit based on verified expenditures for past and future remedial compliance measures.  The $10 million penalty and qualifying expenditures up to $10 million were non-deductible for income tax purposes.  In the three months ended June 26, 2015, the Company recognized a $0.7 million tax expense related to non-deductible compliance expense.  In the nine months ended June 26, 2015, the Company recognized a $2.0 million tax expense related to non-deductible compliance expense and a return to provision adjustment of $1.6 million expense.

It is reasonably possible that within the next twelve months approximately $2.7 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.  The release is not expected to have a material impact on the statement of financial position or operations.