Basis Of Presentation

3 Months Ended

Dec. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three months ended December 28, 2019 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 28, 2019. All references to years in these financial statements are to fiscal years.

Certain prior year amounts have been reclassified to conform to current year's presentation. Management does not consider the amounts reclassified to be material.

Recent Accounting Pronouncements Adopted

Standard	Description	Financial Statement Effect or Other Significant Matters
ASU no. 2016-02 Leases (and all related ASUs)	The standard requires most lease arrangements to be recognized in the balance sheet as lease assets and lease liabilities. The standard also requires additional disclosures about the leasing arrangements. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted.	We adopted this standard using the modified retrospective method, without adjusting prior comparative periods. We recorded an initial right-of-use (ROU) assets of $68,126 and lease liabilities of $71,776, which included reclassifying deferred rent as a component of the ROU asset on the Consolidated Condensed Balance Sheets. There were no material changes to our Consolidated Condensed Statements of Earnings or Consolidated Condensed Statements of Cash Flows. We have completed the necessary changes to our financial statements and related disclosures, internal controls, financial policies and information systems. See Note 7 - Leases, for additional disclosure.
		Date adopted: Q1 2020

    

Recent Accounting Pronouncements Not Yet Adopted

Standard	Description	Financial Statement Effect or Other Significant Matters
ASU no. 2018-15 Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract	The standard amends ASC 350 to include in its scope implementation costs of a Cloud Computing Arrangement (CCA) that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA that is considered a service contract. The ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption.	We are currently evaluating the effect on our financial statements and related disclosures.
		Planned date of adoption: Q1 2021
ASU no. 2016-13 Measurement of Credit Losses on Financial Instruments	The standard replaces the incurred loss model with the current expected credit loss (CECL) model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. The CECL model requires a Company to estimate credit losses expected over the life of the financial assets based on historical experience, current conditions and reasonable and supportable forecasts. The provisions of the standard are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendment requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption.	We are currently evaluating the effect on our financial statements and related disclosures.
		Planned date of adoption: Q1 2021

We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have an immaterial impact on our financial statements and related disclosures.

Impact of Change in Accounting Principle

Beginning in the first quarter of 2020, we changed our method of accounting for the determination of the market-related value of assets for a class of assets within the qualified U.S. defined benefit plan (the plan). This class of assets is currently comprised solely of the fixed income funds asset class held in the portfolio for the plan and provides a natural hedge (liability-hedging assets) against the changes in the recorded amount of net periodic pension cost. Refer to Note 13 - Employee Benefit Plans, in our Form 10-K for the fiscal year ended September 28, 2019, for our fair value disclosure by asset classification. Our previous method of accounting was to calculate the market-related value of assets for all the plan’s assets recognizing investment gains and losses ratably over a five-year period. We have elected to use the fair value of our liability-hedging assets, which represent approximately 80% of the plan’s assets, to determine the market-related value of the assets beginning in the first quarter of 2020. This change in accounting principle is preferable as the recognition of the gains and losses on this class of assets will affect net periodic pension cost in the period in which they occur. No change is being made to the accounting principle for the other classes of pension assets, which represent the remaining 20% of the pension asset portfolio for the plan. The gains and losses for these other plan assets will continue to be amortized into earnings over a five-year period.

The change in accounting principle requires retrospective application and prospective disclosure. The tables below represent the impact of this change on the Consolidated Condensed Statements of Earnings and the Consolidated Condensed Statements of Comprehensive Income (Loss) for the three months ended December 28, 2019, the Consolidated Condensed Balance Sheets for the period ended December 28, 2019, the Consolidated Condensed Statements of Earnings and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended December 29, 2018 and the Consolidated Condensed Balance Sheets for the periods ended December 29, 2018, September 28, 2019 and September 29, 2018, respectively. The change in accounting principle had no impact on the Consolidated Condensed Statements of Cash Flows for these periods.

The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statement of Earnings and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended December 28, 2019.

	Three Months Ended
	As Reported (With Change), December 28, 2019		Impact of Change			Without Change, December 28, 2019
Other	$	7,546	$	2,876		$	10,422
Earnings before income taxes	66,904		(2,876		)	64,028
Income taxes	16,877		(679		)	16,198
Net earnings	$	50,027	$	(2,197	)	$	47,830
Net earnings per share
Basic	$	1.45	$	(0.06	)	$	1.39
Diluted	$	1.44	$	(0.07	)	$	1.37
Retirement liability adjustment	$	4,363	$	2,197		$	6,560
Other comprehensive income (loss), net of tax	$	27,298	$	2,197		$	29,495
Comprehensive income (loss)	$	77,325	$	—		$	77,325

The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of December 28, 2019.

	As Reported (With Change), December 28, 2019			Impact of Change			Without Change, December 28, 2019
Shareholders’ equity
Retained earnings	$	2,170,105		$	2,392		$	2,172,497
Accumulated other comprehensive loss	(388,179		)	(2,392		)	(390,571		)
Total shareholders’ equity	$	1,336,691		$	—		$	1,336,691

The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statement of Earnings and the Consolidated Condensed Statements of Comprehensive Income (Loss) for the three months ended December 29, 2018.

	Three Months Ended
	As Previously Reported, December 29, 2018			Impact of Change			As Reported, December 29, 2018
Other	$	3,434		$	1,701		$	5,135
Earnings before income taxes	58,184			(1,701		)	56,483
Income taxes	14,115			(401		)	13,714
Net earnings	$	44,069		$	(1,300	)	$	42,769
Net earnings per share
Basic	$	1.27		$	(0.04	)	$	1.23
Diluted	$	1.25		$	(0.03	)	$	1.22
Retirement liability adjustment	$	4,819		$	1,300		$	6,119
Other comprehensive income (loss), net of tax	$	(3,904	)	$	1,300		$	(2,604	)
Comprehensive income (loss)	$	40,165		$	—		$	40,165

The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of December 29, 2018.

	As Previously Reported, December 29, 2018			Impact of Change			As Reported, December 29, 2018
Shareholders’ equity
Retained earnings	$	2,023,803		$	(689	)	$	2,023,114
Accumulated other comprehensive loss	(376,085		)	689			(375,396		)
Total shareholders’ equity	$	1,273,264		$	—		$	1,273,264

The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of September 28, 2019.

	As Previously Reported, September 28, 2019			Impact of Change			As Reported, September 28, 2019
Shareholders’ equity
Retained earnings	$	2,133,328		$	(4,589	)	$	2,128,739
Accumulated other comprehensive loss	(420,066		)	4,589			(415,477		)
Total shareholders’ equity	$	1,322,481		$	—		$	1,322,481

The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of September 29, 2018.

	As Previously Reported, September 29, 2018			Impact of Change			As Reported, September 29, 2018
Shareholders’ equity
Retained earnings	$	1,973,514		$	611		$	1,974,125
Accumulated other comprehensive loss	(372,181		)	(611		)	(372,792		)
Total shareholders’ equity	$	1,224,986		$	—		$	1,224,986

See Note 13 - Employee Benefit Plans and Note 16 - Accumulated Other Comprehensive Income (Loss) for adjusted reporting for prior periods.