Income Taxes (Tables)

12 Months Ended

Sep. 28, 2019

Income Taxes [Abstract]

Components of Income Tax Expense

Significant components of income tax expense for the fiscal years ended are as follows:

	2019			2018			2017
Current
U.S.
Federal	$	60		$	19		$	40
State		11			8			6
Non-U.S.		67			40			58
Total current		138			67			104
Deferred:
U.S.
Federal		(47	)		(72	)		34
State		(3	)		12			(10	)
Non-U.S.		(2	)		(26	)		(19	)
Total deferred		(52	)		(86	)		5
Expense for income taxes	$	86		$	(19	)	$	109

Effective Income Tax Rate Reconciliation

The reconciliation between U.S. Federal income taxes at the statutory rate and the Company’s benefit for income taxes on continuing operations for fiscal years ended are as follows:

	2019			2018			2017
U.S. Federal income tax expense at the statutory rate	$	103		$	117		$	157
Adjustments to reconcile to the income tax provision:
U.S. state income tax expense		9			12			6
Changes in state valuation allowance		—			—			(9	)
Research and development credits		(8	)		(7	)		(7	)
Share-based compensation		(12	)		(8	)		(33	)
U.S. tax reform		—			(124	)		—
Permanent differences		—			—			2
Changes in foreign valuation allowance		13			(10	)		3
Foreign income taxed in the U.S.		3			—			—
Manufacturing tax benefits		—			(6	)		(6	)
Permanent foreign currency differences		—			—			(1	)
Rate differences between U.S. and foreign		7			3			(11	)
Sale of subsidiary		(38	)		—			—
Other		9			4			8
Expense for income taxes	$	86		$	(19	)	$	109

Net Deferred Income Tax Liability

The components of the net deferred income tax liability as of fiscal years ended are as follows:

	2019			2018
Deferred tax assets:
Allowance for doubtful accounts	$	3		$	4
Deferred gain on sale-leaseback		5			6
Accrued liabilities and reserves		64			28
Inventories		9			9
Net operating loss carryforward		348			212
Interest expense carryforward		35			—
Alternative minimum tax (AMT) credit carryforward		—			8
Research and development credit carryforward		12			13
Federal and state tax credits		11			10
Other		40			19
Total deferred tax assets		527			309
Valuation allowance		(141	)		(93	)
Total deferred tax assets, net of valuation allowance		386			216
Deferred tax liabilities:
Property, plant and equipment		487			239
Intangible assets		597			306
Other		63			5
Total deferred tax liabilities		1,147			550
Net deferred tax liability	$	(761	)	$	(334	)

Gross Unrecognized Tax Benefits

The following table summarizes the activity related to our gross unrecognized tax benefits for fiscal years ended:

	2019			2018
Beginning unrecognized tax benefits	$	74		$	59
Gross increases – tax positions in prior periods		2			1
Gross increases – current period tax positions		6			19
Gross increases – from RPC acquisition		88			—
Settlements		(1	)		—
Lapse of statute of limitations		(4	)		(5	)
Ending unrecognized tax benefits	$	165		$	74