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Income Taxes
6 Months Ended
Mar. 26, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
In accordance with ASC 740, Income Taxes (ASC 740), each interim period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period.
The Company’s effective tax rate for the three and six months ended March 26, 2016 was 25.0% and 25.5%, respectively, compared to 21.4% and 26.6%, respectively, for the corresponding periods in the prior year. For the current three and six month periods, the effective tax rate was lower than the statutory tax rate primarily due to increased foreign profits at lower tax rates, the domestic production activities deduction benefit, and a change in the valuation allowance related to the sale of a marketable security that had a gain for book purposes. For the three and six months ended March 28, 2015, the effective tax rate differed from the statutory rate primarily due to the domestic production activities deduction benefit and reserve reversals attributable to a favorable income tax audit settlement.
In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Balance Sheet Classification of Deferred Taxes. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the requirement for entities to separate deferred income tax liabilities and assets into current and noncurrent amounts in the balance sheet. Rather, it requires that deferred tax assets and liabilities are classified as noncurrent in the balance sheet. The Company adopted this standard prospectively in the first quarter of fiscal 2016, and prior periods were not retrospectively adjusted.