Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

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	2016			2015			2014
Current
U.S. Federal	$	14,959		$	11,045		$	27,243
State		(852	)		492			1,732
Foreign		30,314			24,131			28,944
		44,421			35,668			57,919
Deferred
U.S. Federal		(6,703	)		(7,686	)		(1,024	)
State		2,060			(195	)		(10	)
Foreign		(17,243	)		(8,831	)		(13,169	)
		(21,886	)		(16,712	)		(14,203	)
Income tax expense	$	22,535		$	18,956		$	43,716

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	2016		2015		2014
U.S.	$	71,319	$	43,592	$	101,803
Foreign		69,116		72,430		107,495
Earnings from continuing operations before income taxes	$	140,435	$	116,022	$	209,298

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	2016			2015
Reserves and liabilities	$	53,119		$	48,918
Loss carryforwards		51,760			49,667
Tax credit carryforwards		34,836			32,015
Employee benefits		13,853			12,316
Retirement benefits		22,703			17,055
Non-qualified stock options		13,571			11,908
Hedging activities		3,350			6,092
Other		1,003			2,187
Total deferred tax assets		194,195			180,158
Less valuation allowance		(42,976	)		(42,694	)
Total deferred tax assets, net of valuation allowance		151,219			137,464
Depreciation and amortization		(7,456	)		(9,352	)
Intangibles and amortization		(116,620	)		(124,941	)
Deferred costs		(3,907	)		(5,779	)
Other		(1,625	)		(1,180	)
Total deferred tax liabilities		(129,608	)		(141,252	)
Net deferred tax assets (liabilities)	$	21,611		$	(3,788	)

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:

	2016			2015			2014
U.S. statutory income tax rate		35.0	%		35.0	%		35.0	%
Foreign taxes		-9.8	%		-10.7	%		-7.6	%
Difference in foreign tax rates		-4.3	%		-5.2	%		-4.4	%
Research & development credits		-5.0	%		-5.1	%		-2.5	%
Non-deductible under consent agreement		0.0	%		2.2	%		0.4	%
Domestic manufacturing deduction		-1.1	%		-0.7	%		-1.3	%
Net change in tax reserves		-0.6	%		-0.2	%		0.1	%
State income taxes		0.2	%		0.2	%		0.5	%
Other, net		1.6	%		0.8	%		0.7	%
Effective income tax rate		16.0	%		16.3	%		20.9	%

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 2, 2015	$	10,583
Unrecognized gross benefit change:
Gross decrease due to prior period adjustments		(475	)
Gross increase due to current period adjustments		1,475
Gross decrease due to settlements with taxing authorities		(2,068	)
Gross decrease due to a lapse with taxing authorities		(2,889	)
Total change in unrecognized gross benefit		(3,957	)
Unrecognized tax benefits as of September 30, 2016	$	6,626
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	6,626
Statement of operations:
Total amount of interest income (expense) included in income tax expense	$	(308	)
Recognized in the statement of financial position:
Total amount of accrued interest included in income taxes payable	$	583

During the next 12 months, it is reasonably possible that approximately $1.4 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	2012 and prior
Canada	2007 and prior
France	2012 and prior
United Kingdom	2013 and prior