Income Taxes (Tables)

12 Months Ended

Sep. 26, 2020

Income Taxes [Abstract]

Components of Income Tax Expense

The Company is being taxed at the U.S. corporate level as a C-Corporation and has provided U.S. Federal, State and foreign income taxes.  Significant components of income tax expense for the fiscal years ended are as follows:

	2020			2019			2018
Current
U.S.
Federal	$	84		$	60		$	19
State		12			11			8
Non-U.S.		154			67			40
Total current		250			138			67
Deferred:
U.S.
Federal		(29	)		(47	)		(72	)
State		(13	)		(3	)		12
Non-U.S.		(54	)		(2	)		(26	)
Total deferred		(96	)		(52	)		(86	)
Expense for income taxes	$	154		$	86		$	(19	)

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:

	2020			2019			2018
U.S. Federal income tax expense at the statutory rate	$	150		$	103		$	117
Adjustments to reconcile to the income tax provision:
U.S. state income tax expense		6			9			12
Federal and state credits		(14	)		(8	)		(7	)
Share-based compensation		(4	)		(12	)		(8	)
Tax Cuts and Jobs Act		—			—			(124	)
Withholding taxes		15			—			—
Changes in foreign valuation allowance		(8	)		13			(10	)
Foreign income taxed in the U.S.		9			3			—
Manufacturing tax benefits		—			—			(6	)
Rate differences between U.S. and foreign		(6	)		7			3
Sale of subsidiary		—			(38	)		—
Other		6			9			4
Expense for income taxes	$	154		$	86		$	(19	)

Net Deferred Income Tax Liability

Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes.  The components of the net deferred income tax liability as of fiscal years ended are as follows:

	2020			2019
Deferred tax assets:
Allowance for doubtful accounts	$	3		$	3
Deferred gain on sale-leaseback		5			5
Accrued liabilities and reserves		104			64
Inventories		10			9
Net operating loss carryforward		291			348
Interest expense carryforward		28			35
Derivatives		127			—
Lease liability		147			—
Research and development credit carryforward		11			12
Federal and state tax credits		14			11
Other		33			40
Total deferred tax assets		773			527
Valuation allowance		(150	)		(141	)
Total deferred tax assets, net of valuation allowance		623			386
Deferred tax liabilities:
Property, plant and equipment		429			487
Intangible assets		588			597
Leased asset		142			—
Included in held for sale		(4	)		—
Other		15			63
Total deferred tax liabilities		1,170			1,147
Net deferred tax liability	$	(547	)	$	(761	)

Gross Unrecognized Tax Benefits

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

	2020			2019
Beginning unrecognized tax benefits	$	165		$	74
Gross increases – tax positions in prior periods		13			2
Gross decreases - tax positions in prior periods		(12	)		—
Gross increases – current period tax positions		—			6
Gross increases – from RPC acquisition		7			88
Settlements		(1	)		(1	)
Lapse of statute of limitations		(4	)		(4	)
Ending unrecognized tax benefits	$	168		$	165