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Income Taxes
6 Months Ended
Oct. 02, 2015
Income Taxes [Abstract]  
Income Taxes
Income Taxes

The Company's effective tax rate from continuing operations (ETR) was 1.7% and 16.6% for the second quarter and first six months of fiscal year 2016, respectively, as compared to 27.8% and 26.8%, respectively, during the same periods of the prior fiscal year. The primary drivers of the ETR for the second quarter and first six months of fiscal year 2016 were the release of the reserve for an uncertain tax position following the closure of an audit in a non-U.S. jurisdiction, which decreased the ETR by 29.9% and 13.0%, respectively, and the global mix of income. The primary drivers of the ETR for the second quarter and first six months of fiscal year 2015 were the global mix of income and changes in valuation allowances in certain non-US jurisdictions. For the tax impact of discontinued operations, see Note 4 to the unaudited Consolidated Condensed Financial Statements.

During the second quarter and first six months of fiscal year 2016, the Company effectively settled uncertain tax positions with non-U.S. tax authorities resulting in a reduction in reserves for uncertain tax positions of $98 million, excluding interest and penalties.

The Internal Revenue Service (IRS) is examining the Company's federal income tax returns for fiscal years 2008 through 2013. The IRS examined several issues for the fiscal years 2008 through 2010 that resulted in audit adjustments to the Company’s federal income tax returns. The Company does not agree with certain proposed adjustments and has filed an Appeals brief and is in negotiations with the IRS. Although the final outcome of such negotiations is uncertain, management believes that the resolution will have a material effect on the Company's uncertain tax positions. The significant items subject to examination primarily relate to foreign exchange losses and other US international tax issues. The IRS has not proposed any adjustments for the fiscal years 2011 through 2013. In addition, the Company may settle certain other tax examinations, have lapses in statutes limitations, or voluntarily settle income tax positions in negotiated settlements for different amounts than the Company has accrued as uncertain tax positions. The Company may need to accrue and ultimately pay additional amounts for tax positions that previously met a more likely than not standard if such positions are not upheld. Conversely, the Company could settle positions with the tax authorities for amounts lower than those that have been accrued or extinguish a position through payment. The Company believes the outcomes which are reasonably possible within the next twelve months may result in a reduction in liability for uncertain tax positions of up to $4 million, excluding interest, penalties, and tax carryforwards.