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Income Taxes
 12 Months Ended
Sep. 27, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The reconciliation of the provision for income taxes to the amount computed by applying the U.S. federal statutory tax rate to earnings before income taxes is as follows:
202520242023
Earnings before income taxes:
Domestic$167,179 $186,376 $140,708 
Foreign145,469 83,370 80,812 
Total$312,648 $269,746 $221,520 
Federal statutory income tax rate21.0 %21.0 %21.0 %
Increase (decrease) in income taxes resulting from:
Impacts of Tax Act0.2 %(1.2)%(0.7)%
Tax on foreign earnings1.3 %0.8 %0.9 %
R&D and foreign tax credits(3.8)%(4.3)%(6.2)%
Divestiture impacts0.4 %0.5 %— %
Foreign tax rates3.8 %2.7 %6.6 %
Equity-based compensation and benefits— %0.2 %0.5 %
Unrecognized tax benefits— %— %(0.5)%
Change in valuation allowance for deferred taxes0.5 %1.7 %(0.8)%
State taxes, net of federal benefit0.5 %0.8 %0.2 %
Other0.9 %0.4 %(0.1)%
Effective income tax rate24.8 %22.6 %20.9 %
Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost included in tax expense the year incurred. As such, we don't measure the impact of the GILTI in our determination of deferred taxes.
During 2025, 2024 and 2023, we repatriated available unremitted earnings from various foreign subsidiaries that were previously taxed of $111,646, $37,259 and $39,156, respectively. We do not assert indefinite reinvestment on unremitted earnings and therefore we record a liability related to the remaining unremitted earnings generated by the foreign subsidiaries. As of September 27, 2025, we have recorded a deferred tax liability of $9,305, which represents the future tax consequences upon ultimate repatriation of the unremitted earnings. We continue to be permanently reinvested in outside basis differences other than the unremitted earnings as we have no plans to liquidate or sell those foreign subsidiaries. In addition, we have not provided for deferred taxes on any outside basis differences of our domestic subsidiaries as we have the ability and intent to recover these basis differences in a tax-free manner. It is not practicable to determine the amount of unrecognized deferred tax related to these basis differences.
The components of income taxes are as follows:
202520242023
Current:
Federal$30,351 $50,813 $42,289 
Foreign48,018 31,210 32,374 
State5,795 8,588 6,696 
Total current84,164 90,611 81,359 
Deferred:
Federal(10,142)(29,268)(30,344)
Foreign4,197 2,589 686 
State(599)(2,972)(5,337)
Total deferred(6,544)(29,651)(34,995)
Income taxes$77,620 $60,960 $46,364 
Realization of deferred tax assets is dependent, in part, upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income, tax planning strategies, carryback opportunities and reversal of existing deferred tax liabilities in making its assessment of the recoverability of deferred tax assets.
The tax effects of temporary differences that generated deferred tax assets and liabilities are as follows:
September 27,
2025		September 28,
2024
Deferred tax assets:
Research and development$86,109 $64,530 
Benefit accruals46,669 54,667 
Inventory reserves28,139 28,435 
Tax benefit carryforwards13,180 18,034 
Contract reserves not currently deductible18,713 18,169 
Lease liability15,756 16,191 
Other accrued expenses— 2,835 
Total gross deferred tax assets208,566 202,861 
Less valuation allowance(12,317)(10,905)
Total net deferred tax assets$196,249 $191,956 
Deferred tax liabilities:
Differences in bases and depreciation of property, plant and equipment$189,878 $178,868 
Pension14,881 16,856 
Other1,631 — 
Total gross deferred tax liabilities206,390 195,724 
Net deferred tax liabilities$(10,141)$(3,768)
Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets.
At September 27, 2025, we have $506 of federal tax credit carryforward with expirations of 2033 and 2034 and $10,403 state tax credit carryforward with expirations of 2027 to indefinite life. The change in the valuation allowance primarily relates to tax benefit carryforwards that were generated in 2025 but not expected to be realized.
We record unrecognized tax benefits as liabilities and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Further, we record interest and penalties related to unrecognized tax benefits in income tax expense. During the period ended September 30, 2023, we recorded a $1,072 benefit for the reversal of our uncertain tax positions as a result of updated guidance. As of September 28, 2024 and September 27, 2025 we have no uncertain tax positions.
We are subject to income taxes in the U.S. and in various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require the application of judgment. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities in significant jurisdictions for tax years before 2022. The statute of limitations in several jurisdictions will expire in the next twelve months and we will have no unrecognized tax benefits recognized if the statute of limitations expires without the relevant taxing authority examining the applicable returns.
During October 2021, the Organization for Economic Cooperation and Development ("OECD") passed Pillar Two, an inclusive framework on Base Erosion and Profit Sharing, which would enact a minimum 15% tax for large multinational companies. Many countries are considering changes to their tax laws or proposing new tax laws to align with the recommendations that have been made by the OECD regarding Pillar Two. The Company is closely monitoring developments and evaluating the potential impacts that Pillar Two will have on future periods, including the qualification for safe harbor. As of September 27, 2025, the Company has not recorded a material top-up tax related to Pillar Two.
On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. The legislation includes a broad range of tax reform provisions affecting businesses including, but not limited to, the expansion of bonus depreciation, immediate expensing of domestic R&D costs, and revisions to the U.S. taxation of profits derived from international operations. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Act allowed the Company to take 100% tax deduction on certain fixed assets that were placed in service after January 19, 2025. Other than accelerated tax depreciation, the Act did not have a material impact on the Company financial position and results of operations as of and for the year ended September 27, 2025.