Income Taxes (Tables)

12 Months Ended

Sep. 29, 2017

Components of Consolidated Income Tax Expense

The following table presents the components of our consolidated income tax expense for years ended September 29, 2017, September 30, 2016 and October 2, 2015 (in thousands):

	For the Years Ended
	September 29, 2017		September 30, 2016			October 2, 2015
Current income tax expense:
Federal	$	29,297	$	36,020		$	72,840
State		8,535		11,336			16,248
Foreign		31,347		52,259			43,344
Total current tax expense		69,179		99,615			132,432
Deferred income tax expense (benefit):
Federal		29,390		6,439			13,337
State		3,407		485			2,295
Foreign		3,866		(34,331	)		(46,809	)
Total deferred tax expense (benefit)		36,663		(27,407	)		(31,177	)
Consolidated income tax expense	$	105,842	$	72,208		$	101,255

Components of Deferred Tax Assets

The following table presents the components of our net deferred tax assets at September 29, 2017 and September 30, 2016 (in thousands):

	September 29, 2017			September 30, 2016
Deferred tax assets:
Obligations relating to:
Defined benefit pension plans	$	52,299		$	77,834
Other employee benefit plans		192,299			179,063
Net Operating Losses		136,783			139,125
Self-insurance programs		489			1,722
Contract revenues and costs		(18,374	)		(8,177	)
Deferred Rent		25,654			7,955
Restructuring		18,258			47,792
Other		19,389			9,933
Valuation Allowance		(58,097	)		(41,684	)
Gross deferred tax assets		368,700			413,563
Deferred tax liabilities:
Depreciation and amortization		(176,327	)		(154,939	)
Other, net		(1,438	)		(1,555	)
Gross deferred tax liabilities		(177,765	)		(156,494	)
Net deferred tax assets	$	190,935		$	257,069

Income Tax Benefits Realized from the Exercise of Nonqualified Stock Options, and Disqualifying Dispositions of Stock Sold Under our Employee Stock Purchase Plans

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 for the years ended September 29, 2017, September 30, 2016 and October 2, 2015 (in millions):

For the Years Ended
September 29, 2017		September 30, 2016		October 2, 2015
$	5.20	$	1.50	$	0.20

Income Tax Expense in Consolidated Statements of Earnings

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 the years ended September 29, 2017, September 30, 2016 and October 2, 2015 (dollars in thousands):

	For the Years Ended
		September 29, 2017			%			September 30, 2016			%		October 2, 2015			%
Statutory amount		$	137,626		35.0%		$		100,353		35.0%		$	150,548		35.0%
State taxes, net of the federal benefit			8,955		2.3%				7,853		2.7%			12,857		3.0%
Exclusion of tax on non-controlling interests			2,223		0.6%				(1,418	)	(0.5%	)		(9,069	)	(2.1%)
Foreign:
Difference in tax rates of foreign operations			(16,987	)	(4.3%	)			(17,184	)	(6.0%	)		(19,180	)	(4.5%)
Benefit from foreign valuation allowance release			(3,085	)	(0.8%	)			(11,182	)	(3.9%	)		(3,372	)	(0.8%)
Tax deductible foreign currency loss			—		0.0%				—		0.0%			(23,100	)	(5.4%)
U.K. tax rate change on deferred tax assets			—		0.0%				8,853		3.1%			—		0.0%
Nontaxable income from foreign affiliate			(3,280	)	(0.8%	)			—		0.0%			—		0.0%
U.S. tax cost of foreign operations			18,612		4.7%				30,850		10.9%			6,814		1.6%
Tax differential on foreign earnings			(4,740	)	(1.2%	)			11,337		4.1%			(38,838	)	(9.0%)
Foreign tax credits			(20,454	)	(5.2%	)			(44,018	)	(15.4%	)		(21,313	)	(5.0%)
Uncertain tax positions			(5,779	)	(1.5%	)			1,449		0.5%			2,281		0.5%
Other items:
IRS §179D deduction			(3,351	)	(0.8%	)			(2,153	)	(0.8%	)		—		0.0%
IRS §199D deduction			(2,113	)	(0.5%	)			(2,800	)	(1.0%	)		(4,582	)	(1.1%)
Foreign partnership income/(loss)			(9,861	)	(2.5%	)			(2,658	)	(0.9%	)		11,858		2.8%
Other items – net			3,336		0.7%				4,263		1.5%			(2,487	)	(0.6%)
Total other items			(11,989	)	(3.1%	)			(3,348	)	(1.2%	)		4,789		1.1%
Taxes on income		$	105,842		26.9%		$		72,208		25.2%		$	101,255		23.5%

Income Tax Payments

The following table presents income tax payments made during the years ended September 29, 2017, September 30, 2016 and October 2, 2015 (in millions):

September 29, 2017		September 30, 2016		October 2, 2015
$	78.39	$	116.30	$	156.50

Components of our Consolidated Earnings Before Taxes

The following table presents the components of our consolidated earnings before taxes for the years ended September 29, 2017, September 30, 2016 and October 2, 2015 (in thousands):

	For the Years Ended
	September 29, 2017		September 30, 2016		October 2, 2015
United States earnings	$	232,342	$	206,159	$	283,504
Foreign earnings		160,875		80,564		146,633
	$	393,217	$	286,723	$	430,137

Schedule of Unrecognized Tax Benefits Roll Forward

The following table presents the reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended September 29, 2017, September 30, 2016 and October 2, 2015 (in thousands):

	For the Years Ended
	September 29, 2017			September 30, 2016			October 2, 2015
Balance, beginning of year	$	44,167		$	42,666		$	41,923
Additions based on tax positions related to the current year		5,900			5,670			6,440
Additions for tax positions of prior years		237			367			—
Reductions for tax positions of prior years		(4,524	)		(2,451	)		(5,697	)
Settlement		(7,200	)		(2,085	)		—
Balance, end of year	$	38,580		$	44,167		$	42,666