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Income Taxes | 12 Months Ended
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Oct. 25, 2015
Income Taxes |
Income Taxes | NOTE K Income Taxes The components of the provision for income taxes are as follows:
(in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ 299,557 |  |  | $ 264,533 |  |  | $ 231,359 |
State |  | 39,817 |  |  | 34,034 |  |  | 30,671 |
Foreign |  | 10,526 |  |  | 7,759 |  |  | 5,334 |
Total current |  | 349,900 |  |  | 306,326 |  |  | 267,364 |
Deferred: |  |  |  |  |  |  |  |  |
U.S. Federal |  | 18,451 |  |  | 8,756 |  |  | 1,080 |
State |  | 1,070 |  |  | 873 |  |  | (194 | )
Foreign |  | 458 |  |  | 171 |  |  | 181 |
Total deferred |  | 19,979 |  |  | 9,800 |  |  | 1,067 |
Total provision for income taxes |  | $ 369,879 |  |  | $ 316,126 |  |  | $ 268,431 |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company believes that, based upon its lengthy and consistent history of profitable operations, it is more likely than not the net deferred tax assets of $22.8 million will be realized on future tax returns, primarily from the generation of future taxable income. Significant components of the deferred income tax liabilities and assets are as follows:
|  |  | October 25, |  |  | October 26, |
(in thousands) |  |  | 2015 |  |  | 2014 |
Deferred tax liabilities: |  |  |  |  |  |  |
Goodwill and intangible assets |  |  | $ (213,312 | ) |  | $ (168,167 | )
Tax over book depreciation and basis differences |  |  | (94,496 | ) |  | (85,623 | )
Other, net |  |  | (18,788 | ) |  | (30,252 | )
Deferred tax assets: |  |  |  |  |  |  |
Pension and post-retirement benefits |  |  | 154,306 |  |  | 152,392 |
Employee compensation related liabilities |  |  | 109,061 |  |  | 101,706 |
Marketing and promotional accruals |  |  | 37,603 |  |  | 28,703 |
Other accruals not currently deductible |  |  | – |  |  | 13,010 |
Other, net |  |  | 48,432 |  |  | 51,082 |
Net deferred tax assets |  |  | $ 22,806 |  |  | $ 62,851 |
Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
U.S. statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State taxes on income, net of federal tax benefit |  | 2.7 |  |  | 2.8 |  |  | 2.7 |
Domestic production activities deduction |  | (2.6 | ) |  | (2.7 | ) |  | (2.4 | )
All other, net |  | (0.1 | ) |  | (0.8 | ) |  | (1.7 | )
Effective tax rate |  | 35.0 | % |  | 34.3 | % |  | 33.6 | %
No provision has been made for U.S. federal income taxes on certain undistributed earnings of foreign subsidiaries and joint ventures that the Company intends to permanently invest or that may be remitted substantially tax-free. The total of undistributed earnings that would be subject to federal income tax if remitted under existing law is approximately $109.3 million as of October 25, 2015. Determination of the unrecognized deferred tax liability related to these earnings is not practicable because of the complexities with its hypothetical calculation. Upon distribution of these earnings, we will be subject to U.S. taxes and withholding taxes payable to various foreign governments. A credit for foreign taxes already paid would be available to reduce the U.S. tax liability. Total income taxes paid during fiscal years 2015, 2014, and 2013 were $296.5 million, $285.8 million, and $226.2 million, respectively. The following table sets forth changes in the unrecognized tax benefits, excluding interest and penalties, for fiscal years 2014 and 2015.
(in thousands) |  |  |
Balance as of October 27, 2013 |  | $ 20,085 |
Tax positions related to the current period: |  |  |
Increases |  | 4,693 |
Decreases |  | (670 | )
Tax positions related to prior periods: |  |  |
Increases |  | 4,455 |
Decreases |  | (3,245 | )
Settlements |  | (573 | )
Decreases related to a lapse of applicable statute of limitations |  | (2,137 | )
Balance as of October 26, 2014 |  | $ 22,608 |
Tax positions related to the current period: |  |  |
Increases |  | 2,920 |
Decreases |  | – |
Tax positions related to prior periods: |  |  |
Increases |  | 1,629 |
Decreases |  | (796 | )
Settlements |  | (2,839 | )
Decreases related to a lapse of applicable statute of limitations |  | (2,185 | )
Balance as of October 25, 2015 |  | $ 21,337 |
The amount of unrecognized tax benefits, including interest and penalties, at October 25, 2015, recorded in other long-term liabilities was $24.6 million, of which $16.0 million would impact the Company’s effective tax rate if recognized. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with losses of $1.0 million included in expense for fiscal year 2015. The amount of accrued interest and penalties at October 25, 2015, associated with unrecognized tax benefits was $3.2 million. The Company is regularly audited by federal and state taxing authorities. The United States Internal Revenue Service (I.R.S.) is currently examining fiscal years 2013, 2014, and 2015. During the first quarter of fiscal year 2015, the Company entered into a voluntary program to work with the I.R.S. called Compliance Assurance Process (CAP). The objective of CAP is to contemporaneously work with the I.R.S. to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company has elected to participate in the CAP program for 2015 and may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2010. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change based on the status of the examinations, it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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 3: 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 4: 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 5: 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 + Details
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