Taxes on Earnings (Tables)

12 Months Ended

Sep. 27, 2019

Taxes on earnings from continuing operations were as follows:

Earnings from continuing operations before taxes are generated from the following geographic areas:

The effective tax rate on continuing operations differs from the U.S. federal statutory tax rate as a result of the following:



	Fiscal Years
	2019		2018		2017
Federal statutory income tax rate	21.0	%	24.6	%	35.0	%
Impact of U.S. Tax Reform	2.1	%	46.3	%	—	%
State and local taxes, net of federal tax benefit	2.6	%	0.5	%	0.9	%
Non-U.S. income taxed at different rates, net	1.5	%	(0.6	)%	(8.4	)%
Foreign-derived intangible income deduction	(1.4	)%	—	%	—	%
Resolution of tax contingencies due to expiration of statutes of limitation	(1.8	)%	(2.5	)%	(1.7	)%
Excess stock deduction	(1.6	)%	(1.5	)%	—	%
Goodwill impairment	2.5	%	—	%	—	%
Change in acquirer's deferred taxes related to purchase accounting	0.7	%	(1.8	)%	—	%
In-process R&D expense	1.1	%	—	%	—	%
Other	3.9	%	1.8	%	(0.4	)%
Effective tax rate	30.6	%	66.8	%	25.4	%

Significant components of deferred tax assets and liabilities are as follows:



	September 27,			September 28,
(In millions)	2019			2018
Deferred Tax Assets:
Deferred revenues	$	21.1		$	13.2
Deferred compensation	33.9			34.6
Product warranty	5.5			7.5
Inventory adjustments	6.0			7.6
Share-based compensation	12.4			13.7
Environmental reserve	1.8			2.2
Accruals and reserves	11.8			12.1
Net operating loss carryforwards	120.7			132.0
Other	37.1			24.2
	250.3			247.1
Valuation allowance	(99.7		)	(101.6		)
Total deferred tax assets	150.6			145.5
Deferred Tax Liabilities:
Tax-deductible goodwill	(20.7		)	(31.6		)
Intangibles	(61.7		)	(6.7		)
Property, plant and equipment	(7.1		)	(9.4		)
Unremitted earnings of foreign subsidiaries	(34.1		)	(20.4		)
Other	(17.6		)	(6.6		)
Total deferred tax liabilities	(141.2		)	(74.7		)
Net deferred tax assets	$	9.4		$	70.8
Reported As:
Deferred tax assets	$	84.7		$	102.2
Net current deferred tax liabilities (included in accrued liabilities)	(75.3		)	(31.4		)
Net deferred tax assets	$	9.4		$	70.8

Income taxes paid were as follows:



	Fiscal Years
(In millions)	2019		2018		2017
Federal income taxes paid, net	$	50.5	$	10.6	$	62.0
State, income taxes paid, net	11.9		7.2		5.0
Foreign income taxes paid, net	66.1		68.2		77.1
Total income taxes paid, net	$	128.5	$	86.0	$	144.1

Changes in the Company’s unrecognized tax benefits were as follows:



	Fiscal Years
(In millions)	2019			2018			2017
Unrecognized tax benefits balance–beginning of fiscal year	$	43.5		$	42.7		$	40.7
Additions based on tax positions related to a prior year	0.2			1.1			1.4
Reductions based on tax positions related to a prior year	(0.8		)	(3.0		)	(0.3		)
Additions based on tax positions related to the current year	13.2			14.8			5.8
Settlements	—			(2.8		)	—
Reductions resulting from the expiration of the applicable statute of limitations	(6.3		)	(9.3		)	(4.9		)
Unrecognized tax benefits balance–end of fiscal year	$	49.8		$	43.5		$	42.7