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Income Taxes | 12 Months Ended
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Sep. 29, 2012
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:
|  | 2012 |  | 2011 |  | 2010
Earnings before income taxes: |  |  |  |  |  |
Domestic |  | $ | 120,158 |  |  | $ | 89,409 |  |  | $ | 82,654 |
Foreign |  | 86,506 |  |  | 96,801 |  |  | 66,955 |
Eliminations |  | 2,177 |  |  | (2,425 | ) |  | (173 | )
Total |  | $ | 208,841 |  |  | $ | 183,785 |  |  | $ | 149,436 |
Computed expected tax expense |  | $ | 73,094 |  |  | $ | 64,325 |  |  | $ | 52,303 |
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |
Foreign and R&D tax credits |  | (1,029 | ) |  | (7,578 | ) |  | (3,185 | )
Foreign tax rates |  | (11,126 | ) |  | (6,704 | ) |  | (9,711 | )
Export and manufacturing incentives |  | (2,275 | ) |  | (1,680 | ) |  | (840 | )
State taxes, net of federal benefit |  | 3,346 |  |  | 2,396 |  |  | 2,274 |
Change in valuation allowance for deferred taxes |  | (4,030 | ) |  | (3,100 | ) |  | 634 |
Change in enacted tax rates |  | (1,303 | ) |  | (277 | ) |  | — |
Other |  | (298 | ) |  | 382 |  |  | (133 | )
Income taxes |  | $ | 56,379 |  |  | $ | 47,764 |  |  | $ | 41,342 |
Effective income tax rate |  | 27.0 | % |  | 26.0 | % |  | 27.7 | %
At September 29, 2012, various subsidiaries had tax benefit carryforwards totaling $37,285. These tax benefit carryforwards generally do not expire and can be used to reduce current taxes otherwise due on future earnings of those subsidiaries. The change in the valuation allowance relates to tax benefit carryforwards reflecting recent and projected financial performance, tax planning strategies and statutory tax carryforward periods. No provision has been made for U.S. federal or foreign taxes on that portion of certain foreign subsidiaries’ undistributed earnings ($598,280 at September 29, 2012) considered to be permanently reinvested. It is not practicable to determine the amount of tax that would be payable if these amounts were repatriated to the U.S. The components of income taxes are as follows:
|  | 2012 |  | 2011 |  | 2010
Current: |  |  |  |  |  |
Federal |  | $ | 34,361 |  |  | $ | 14,307 |  |  | $ | 10,642 |
Foreign |  | 20,646 |  |  | 27,746 |  |  | 17,362 |
State |  | 5,485 |  |  | 2,788 |  |  | 2,024 |
Total current |  | 60,492 |  |  | 44,841 |  |  | 30,028 |
Deferred: |  |  |  |  |  |
Federal |  | 1,239 |  |  | 7,449 |  |  | 12,744 |
Foreign |  | (5,014 | ) |  | (5,424 | ) |  | (2,905 | )
State |  | (338 | ) |  | 898 |  |  | 1,475 |
Total deferred |  | (4,113 | ) |  | 2,923 |  |  | 11,314 |
Income taxes |  | $ | 56,379 |  |  | $ | 47,764 |  |  | $ | 41,342 |
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 and tax planning strategies 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 29, 2012 |  | October 1, 2011
Deferred tax assets: |  |  |  |
Benefit accruals |  | $ | 219,396 |  |  | $ | 188,473 |
Inventory reserves |  | 30,953 |  |  | 29,449 |
Tax benefit carryforwards |  | 14,928 |  |  | 11,789 |
Contract loss reserves not currently deductible |  | 12,124 |  |  | 14,231 |
Other accrued expenses |  | 14,563 |  |  | 13,303 |
Total gross deferred tax assets |  | 291,964 |  |  | 257,245 |
Less valuation allowance |  | (1,746 | ) |  | (4,106 | )
Total net deferred tax assets |  | 290,218 |  |  | 253,139 |
Deferred tax liabilities: |  |  |  |
Differences in bases and depreciation of property, plant and equipment |  | 172,253 |  |  | 166,039 |
Pension |  | 49,293 |  |  | 50,061 |
Foreign currency |  | 1,963 |  |  | 1,492 |
Other |  | 415 |  |  | — |
Total gross deferred tax liabilities |  | 223,924 |  |  | 217,592 |
Net deferred tax assets |  | $ | 66,294 |  |  | $ | 35,547 |
Net deferred tax assets and liabilities are included in the balance sheet as follows:
|  | September 29, 2012 |  | October 1, 2011
Current assets |  | $ | 87,780 |  |  | $ | 82,513 |
Other assets |  | 16,280 |  |  | 10,826 |
Other accrued liabilities |  | (1,311 | ) |  | (1,063 | )
Long-term liabilities |  | (36,455 | ) |  | (56,729 | )
Net deferred tax assets |  | $ | 66,294 |  |  | $ | 35,547 |
We have unrecognized tax benefits which, if ultimately recognized, will reduce our annual effective tax rate. A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, is as follows:
|  | September 29, 2012 |  | October 1, 2011
Balance at beginning of year |  | $ | 6,696 |  |  | $ | 9,836 |
Decreases as a result of tax positions for prior years |  | (151 | ) |  | (41 | )
Increases as a result of tax positions for current year |  | — |  |  | 160 |
Reductions as a result of lapse of statute of limitations |  | (2,622 | ) |  | (1,527 | )
Settlement of tax positions |  | — |  |  | (1,732 | )
Balance at end of year |  | $ | 3,923 |  |  | $ | 6,696 |
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 significant 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 for years before 2009. The statute of limitations in several jurisdictions will expire in the next twelve months and we have unrecognized tax benefits of $2,173, which would be recognized if the statute of limitations expires without the relevant taxing authority examining the applicable returns. We record interest and penalties related to unrecognized tax benefits in income tax expense. We had accrued interest and penalties of $1,473 and $1,634 at September 29, 2012 and October 1, 2011, respectively. We expensed interest of $368 and $585 for 2012 and 2011, respectively.

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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 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 2: 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 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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 7: 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 8: 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 + Details
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