XML 44 R24.htm IDEA: XBRL DOCUMENT
v3.25.3

Income Taxes | 12 Months Ended
--- | ---
Sep. 27, 2025
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:
|  | 2025 |  | 2024 |  | 2023
Earnings before income taxes: |  |  |  |  |  |
Domestic |  | $ | 167,179 |  |  | $ | 186,376 |  |  | $ | 140,708 |
Foreign |  | 145,469 |  |  | 83,370 |  |  | 80,812 |
Total |  | $ | 312,648 |  |  | $ | 269,746 |  |  | $ | 221,520 |
Federal statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |
Impacts of Tax Act |  | 0.2 | % |  | (1.2) | % |  | (0.7) | %
Tax on foreign earnings |  | 1.3 | % |  | 0.8 | % |  | 0.9 | %
R&D and foreign tax credits |  | (3.8) | % |  | (4.3) | % |  | (6.2) | %
Divestiture impacts |  | 0.4 | % |  | 0.5 | % |  | — | %
Foreign tax rates |  | 3.8 | % |  | 2.7 | % |  | 6.6 | %
Equity-based compensation and benefits |  | — | % |  | 0.2 | % |  | 0.5 | %
Unrecognized tax benefits |  | — | % |  | — | % |  | (0.5) | %
Change in valuation allowance for deferred taxes |  | 0.5 | % |  | 1.7 | % |  | (0.8) | %
State taxes, net of federal benefit |  | 0.5 | % |  | 0.8 | % |  | 0.2 | %
Other |  | 0.9 | % |  | 0.4 | % |  | (0.1) | %
Effective income tax rate |  | 24.8 | % |  | 22.6 | % |  | 20.9 | %
Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost included in tax expense the year incurred. As such, we don't measure the impact of the GILTI in our determination of deferred taxes. During 2025, 2024 and 2023, we repatriated available unremitted earnings from various foreign subsidiaries that were previously taxed of $111,646, $37,259 and $39,156, respectively. We do not assert indefinite reinvestment on unremitted earnings and therefore we record a liability related to the remaining unremitted earnings generated by the foreign subsidiaries. As of September 27, 2025, we have recorded a deferred tax liability of $9,305, which represents the future tax consequences upon ultimate repatriation of the unremitted earnings. We continue to be permanently reinvested in outside basis differences other than the unremitted earnings as we have no plans to liquidate or sell those foreign subsidiaries. In addition, we have not provided for deferred taxes on any outside basis differences of our domestic subsidiaries as we have the ability and intent to recover these basis differences in a tax-free manner. It is not practicable to determine the amount of unrecognized deferred tax related to these basis differences. The components of income taxes are as follows:
|  | 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |  |
Federal |  | $ | 30,351 |  |  | $ | 50,813 |  |  | $ | 42,289 |
Foreign |  | 48,018 |  |  | 31,210 |  |  | 32,374 |
State |  | 5,795 |  |  | 8,588 |  |  | 6,696 |
Total current |  | 84,164 |  |  | 90,611 |  |  | 81,359 |
Deferred: |  |  |  |  |  |
Federal |  | (10,142) |  |  | (29,268) |  |  | (30,344) |
Foreign |  | 4,197 |  |  | 2,589 |  |  | 686 |
State |  | (599) |  |  | (2,972) |  |  | (5,337) |
Total deferred |  | (6,544) |  |  | (29,651) |  |  | (34,995) |
Income taxes |  | $ | 77,620 |  |  | $ | 60,960 |  |  | $ | 46,364 |
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, tax planning strategies, carryback opportunities and reversal of existing deferred tax liabilities 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 27, 2025 |  | September 28, 2024
Deferred tax assets: |  |  |  |
Research and development |  | $ | 86,109 |  |  | $ | 64,530 |
Benefit accruals |  | 46,669 |  |  | 54,667 |
Inventory reserves |  | 28,139 |  |  | 28,435 |
Tax benefit carryforwards |  | 13,180 |  |  | 18,034 |
Contract reserves not currently deductible |  | 18,713 |  |  | 18,169 |
Lease liability |  | 15,756 |  |  | 16,191 |
Other accrued expenses |  | — |  |  | 2,835 |
Total gross deferred tax assets |  | 208,566 |  |  | 202,861 |
Less valuation allowance |  | (12,317) |  |  | (10,905) |
Total net deferred tax assets |  | $ | 196,249 |  |  | $ | 191,956 |
Deferred tax liabilities: |  |  |  |
Differences in bases and depreciation of property, plant and equipment |  | $ | 189,878 |  |  | $ | 178,868 |
Pension |  | 14,881 |  |  | 16,856 |
Other |  | 1,631 |  |  | — |
Total gross deferred tax liabilities |  | 206,390 |  |  | 195,724 |
Net deferred tax liabilities |  | $ | (10,141) |  |  | $ | (3,768) |
Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets. At September 27, 2025, we have $506 of federal tax credit carryforward with expirations of 2033 and 2034 and $10,403 state tax credit carryforward with expirations of 2027 to indefinite life. The change in the valuation allowance primarily relates to tax benefit carryforwards that were generated in 2025 but not expected to be realized. We record unrecognized tax benefits as liabilities and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Further, we record interest and penalties related to unrecognized tax benefits in income tax expense. During the period ended September 30, 2023, we recorded a $1,072 benefit for the reversal of our uncertain tax positions as a result of updated guidance. As of September 28, 2024 and September 27, 2025 we have no uncertain tax positions. 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 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 in significant jurisdictions for tax years before 2022. The statute of limitations in several jurisdictions will expire in the next twelve months and we will have no unrecognized tax benefits recognized if the statute of limitations expires without the relevant taxing authority examining the applicable returns. During October 2021, the Organization for Economic Cooperation and Development ("OECD") passed Pillar Two, an inclusive framework on Base Erosion and Profit Sharing, which would enact a minimum 15% tax for large multinational companies. Many countries are considering changes to their tax laws or proposing new tax laws to align with the recommendations that have been made by the OECD regarding Pillar Two. The Company is closely monitoring developments and evaluating the potential impacts that Pillar Two will have on future periods, including the qualification for safe harbor. As of September 27, 2025, the Company has not recorded a material top-up tax related to Pillar Two. On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was signed into law. The legislation includes a broad range of tax reform provisions affecting businesses including, but not limited to, the expansion of bonus depreciation, immediate expensing of domestic R&D costs, and revisions to the U.S. taxation of profits derived from international operations. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Act allowed the Company to take 100% tax deduction on certain fixed assets that were placed in service after January 19, 2025. Other than accelerated tax depreciation, the Act did not have a material impact on the Company financial position and results of operations as of and for the year ended September 27, 2025.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration