INCOME TAXES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | INCOME TAXES The effective tax rate for the three and nine month periods ended June 28, 2026 and June 29, 2025, was as follows:
The estimated annual effective tax rate applied to the three and nine month periods ended June 28, 2026, differs from the US federal statutory rate of 21% principally due to income earned outside the U.S. that is subject to U.S. tax, including the U.S. tax on global intangible low taxed income (“GILTI”), net of applicable deductions, and certain nondeductible expenses. During the nine month period ended June 28, 2026, the Company effectively settled an uncertain tax position in the U.S. As a result, the Company recognized a non-cash reduction in income tax expense of $17.6 million during the nine month period ended June 28, 2026. During the three and nine month periods ended June 28, 2026, the Company recorded a net tax benefit of $10.4 million related to adjustments discovered as part of the ongoing IRS audit. The adjustments consist of $12.0 million estimated increase to the Company’s mandatory repatriation tax from the tax year ended September 30, 2018 plus applicable interest, net of $22.4 million of tax benefits in subsequent open tax years from additional use of foreign tax credits, against which the Company had recorded a full valuation allowance. As part of the HPC Transaction, the Company was required to restructure the corporate entity organization to facilitate the transaction, and, as a result, recorded $19.2 million income tax expense related to gain on the movement of non-HPC assets within the group, net of applicable deductions and credits. The execution of the HPC Transaction and transfer of the Company’s partial ownership interest resulted in an estimated $216.2 million of capital loss, which is expected to be carried back to the fiscal year ended September 30, 2023 to offset prior capital gains. As a result, the Company recorded $47.1 million of tax benefits related to the loss during the three and nine month periods ended June 28, 2026. The Company also recorded $58.1 million income tax expense for the three and nine month periods ended June 28, 2026 to establish a deferred tax liability for the excess of the Company’s book basis in the HPC business over its tax basis due to the change in form of the HPC business that resulted from the HPC Transaction. During the three and nine month periods ended June 28, 2026, the Company recorded $15.0 million of tax expense related to U.S. return to provision differences for the tax year ended September 30, 2025, primarily from changes in tax return elections made as a result of the anticipated income tax consequences of the HPC Transaction. During the three month period ended June 28, 2026, the Company and its HPC segment recorded an impairment charge of $104.0 million to the indefinite lived intangible assets held by the HPC business unit. The charge resulted in an income tax benefit of $25.1 million during the three and nine month periods ended June 28, 2026.
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