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Income Taxes | 12 Months Ended
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Sep. 30, 2011
Income Taxes |
Income Taxes | 9. Income Taxes The following table presents the components of our consolidated income tax expense for each of the last three fiscal years (in thousands):
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current income tax expense: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 102,903 |  |  | $ | 123,154 |  |  | $ | 146,865 |
State |  |  | 25,067 |  |  |  | 23,477 |  |  |  | 30,137 |
Foreign |  |  | 37,617 |  |  |  | 22,909 |  |  |  | 42,597 |
Total current tax expense |  |  | 165,587 |  |  |  | 169,540 |  |  |  | 219,599 |
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 10,482 |  |  |  | (19,518 | ) |  |  | (733 | )
State |  |  | (1,760 | ) |  |  | (675 | ) |  |  | 397 |
Foreign |  |  | 7,131 |  |  |  | (3,700 | ) |  |  | 5,656 |
Total deferred tax expense (benefit) |  |  | 15,853 |  |  |  | (23,893 | ) |  |  | 5,320 |
Consolidated income tax expense |  | $ | 181,440 |  |  | $ | 145,647 |  |  | $ | 224,919 |
Deferred taxes reflect the tax effects of the differences between the amounts recorded as assets and liabilities for financial reporting purposes and the comparable amounts recorded for income tax purposes. Deferred tax assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The following table presents the components of our net deferred tax assets at September 30, 2011 and October 1, 2010 (in thousands):
|  | 2011 |  |  | 2010 |
Deferred tax assets: |  |  |  |  |  |  |  |
Obligations relating to: |  |  |  |  |  |  |  |
Defined benefit pension plans |  | $ | 80,632 |  |  | $ | 108,826 |
Other employee benefit plans |  |  | 151,855 |  |  |  | 137,810 |
Self-insurance programs |  |  | 14,999 |  |  |  | 19,481 |
Contract revenues and costs |  |  | 15,333 |  |  |  | 13,602 |
Foreign tax credits carryforward |  |  | 320 |  |  |  | 14,305 |
Other |  |  | 9,081 |  |  |  | 10,719 |
Gross deferred tax assets |  |  | 272,220 |  |  |  | 304,743 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | (130,536 | ) |  |  | (81,693 | )
Other, net |  |  | (7,068 | ) |  |  | (792 | )
Gross deferred tax liabilities |  |  | (137,604 | ) |  |  | (82,485 | )
Net deferred tax assets |  | $ | 134,616 |  |  | $ | 222,258 |
The following table presents the income tax benefits realized from the exercise of nonqualified stock options, and disqualifying dispositions of stock sold under our employee stock purchase plans during each of the last three fiscal years (in millions):
|  | 2011 |  |  | 2010 |  |  | 2009 |
Income tax benefits realized under stock plans |  | $ | 11.9 |  |  | $ | 4.0 |  |  | $ | 4.7 |
The following table reconciles total income tax expense using the statutory U.S. federal income tax rate to the consolidated income tax expense shown in the accompanying Consolidated Statements of Earnings for each of the last three fiscal years (dollars in thousands):
|  | 2011 |  |  | 2010 |  |  | 2009 |
Statutory amount |  | $ | 180,831 |  |  | $ | 137,177 |  |  | $ | 218,446 |
State taxes, net of the federal benefit |  |  | 15,150 |  |  |  | 14,821 |  |  |  | 19,848 |
Utilization of foreign tax credit carryover |  |  | — |  |  |  | — |  |  |  | (5,856 | )
Tax differential on foreign earnings |  |  | (7,841 | ) |  |  | (7,178 | ) |  |  | (9,838 | )
Other, net |  |  | (6,700 | ) |  |  | 827 |  |  |  | 2,319 |
Consolidated income tax expense |  | $ | 181,440 |  |  | $ | 145,647 |  |  | $ | 224,919 |
Rates used to compute statutory amount |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Consolidated effective income tax rate |  |  | 35.1 | % |  |  | 37.2 | % |  |  | 36.0 | %
The following table presents income tax payments made during each of the last three fiscal years (in millions):
|  | 2011 |  |  | 2010 |  |  | 2009 |
Income tax payments |  | $ | 139.2 |  |  | $ | 170.8 |  |  | $ | 255.5 |
The following table presents the components of our consolidated earnings before taxes for each of the last three fiscal years (in thousands):
|  | 2011 |  |  | 2010 |  |  | 2009 |
United States earnings |  | $ | 341,059 |  |  | $ | 295,144 |  |  | $ | 449,065 |
Foreign earnings |  |  | 175,602 |  |  |  | 96,790 |  |  |  | 175,067 |
|  | $ | 516,661 |  |  | $ | 391,934 |  |  | $ | 624,132 |
United States income taxes, net of applicable credits, have been provided on the undistributed earnings of the Company's foreign subsidiaries, except in those instances where the earnings are expected to be permanently reinvested. At September 30, 2011, approximately $26.1 million of such undistributed earnings of certain foreign subsidiaries was expected to be permanently reinvested. Should these earnings be repatriated, approximately $7.4 million of income taxes would be payable. The Company accounts for unrecognized tax benefits in accordance with FASB's Accounting Standards Codification 740. It accounts for interest and penalties on unrecognized tax benefits as interest and penalties (i.e., not as part of income tax expense). The Company's liability for gross unrecognized tax benefits was $31.1 million and $27.8 million at September 30, 2011 and October 1, 2010, respectively, all of which, if recognized, would affect the Company's consolidated effective income tax rate. The Company had $4.0 million and $4.4 million in accrued interest and penalties at September 30, 2011 and October 1, 2010, respectively. The Company estimates that, within 12 months, $4.5 million of gross, primarily non-U.S. unrecognized tax benefits will reverse due to the anticipated expiration of time to assess tax. As of September 30, 2011, the Company's U.S. federal income tax returns for tax years 2008 through 2011 remain subject to examination.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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