Income Taxes |
9 Months Ended |
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Jul. 03, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | INCOME TAXES: During the three and nine months ended July 3, 2026, the Company recorded a valuation allowance to the “Provision for Income Taxes” on the Condensed Consolidated Statements of Income of $8.1 million and $11.5 million, respectively, against global deferred tax asset balances, as it is more likely than not a tax benefit will not be realized. The Company also recorded a benefit of $6.6 million from the remeasurement of certain tax reserves during the three and nine months ended July 3, 2026. During the three and nine months ended June 27, 2025, the Company recorded a benefit to the “Provision for Income Taxes” on the Condensed Consolidated Statements of Income of $3.1 million for the reversal of a valuation allowance against deferred tax assets within a foreign subsidiary due to an acquisition of a business. In response to the development of the global economy toward digitalization, the Organization for Economic Co-operation & Development (“OECD”) released the Pillar Two Global Anti-Base Erosion Model Rules (“Pillar Two”). Under Pillar Two, multinational companies with consolidated revenue greater than €750 million will be subject to a minimum effective tax rate of 15.0% within each respective country. On January 5, 2026, the OECD published details of a ‘side-by-side’ package which provides additional Pillar Two guidance. The package covers a number of new or extended safe harbors, and the ‘side-by-side’ system, which will allow the US tax regime to sit alongside Pillar Two. As such, and taking into consideration the safe harbor rules, the Pillar Two legislation has had no material impact on the condensed consolidated financial statements, and the Company continues to anticipate that it will not have a material impact on the condensed consolidated financial statements in future periods. On July 4, 2025, the One Big Beautiful Bill (“OBBB”) Act was signed into law. The OBBB Act contains a broad range of tax reform measures, including modification to limitations on deductions for interest expense, reinstatement of elective 100% first year bonus depreciation and immediate expensing of domestic research and development expenditures. The new law has a range of effective dates. With respect to the provisions of the law that became effective in fiscal year 2026, the Company’s federal cash taxes have been impacted favorably year to date and are expected to remain favorable through the end of the fiscal year. The Company does not expect these provisions to have a material impact on the effective tax rate in fiscal year 2026 and future years.
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