Taxes on Earnings (Tables)

12 Months Ended

Oct. 02, 2020

Income Tax Disclosure [Abstract]

Schedule of Taxes on Earnings

Taxes on earnings from operations were as follows:

	Fiscal Years
(In millions)	2020		2019		2018
Current provision:
Federal	$	4.7	$	39.0	$	188.3
State and local	(0.5)		5.2		8.0
Foreign	57.5		69.3		47.9
Total current	61.7		113.5		244.2
Deferred provision (benefit):
Federal	18.2		4.0		43.7
State and local	0.6		2.8		(3.3)
Foreign	8.4		8.3		17.2
Total deferred	27.2		15.1		57.6
Taxes on earnings	$	88.9	$	128.6	$	301.8

Schedule of Earnings Before Taxes

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

	Fiscal Years
(In millions)	2020		2019		2018
United States	$	63.8	$	136.4	$	168.4
Foreign	294.5		284.4		283.7
Total earnings before taxes	$	358.3	$	420.8	$	452.1

Schedule of Effective Income Tax Rate

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

	Fiscal Years
	2020		2019		2018
Federal statutory income tax rate	21.0	%	21.0	%	24.6	%
Impact of U.S. Tax Reform	0.6	%	2.1	%	46.3	%
State and local taxes, net of federal tax benefit	1.3	%	2.6	%	0.5	%
Non-U.S. income taxed at different rates, net	4.5	%	1.5	%	(0.6)	%
Foreign-derived intangible income deduction	(1.1)	%	(1.4)	%	—	%
Resolution of tax contingencies due to expiration of statutes of limitation	(2.3)	%	(1.8)	%	(2.5)	%
Excess stock deduction	(2.1)	%	(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	%	—	%
U.S. minimum tax	2.0	%	0.4	%	—	%
Other	0.9	%	3.5	%	1.8	%
Effective tax rate	24.8	%	30.6	%	66.8	%

Schedule of Components of Deferred Tax Assets and Liabilities

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

	October 2,		September 27,
(In millions)	2020		2019
Deferred Tax Assets:
Deferred revenues	$	12.5	$	21.1
Deferred compensation	24.7		33.9
Product warranty	4.8		5.5
Inventory adjustments	5.4		6.0
Share-based compensation	9.6		12.4
Accruals and reserves	18.9		11.8
Net operating loss carryforwards	157.2		120.7
Lease liability	12.6		—
Other	53.1		38.9
	298.8		250.3
Valuation allowance	(137.9)		(99.7)
Total deferred tax assets	160.9		150.6
Deferred Tax Liabilities:
Tax-deductible goodwill	(23.6)		(20.7)
Intangibles	(52.2)		(61.7)
Property, plant and equipment	(8.3)		(7.1)
Unremitted earnings of foreign subsidiaries	(58.8)		(34.1)
Leased asset	(11.0)		—
Other	(26.7)		(17.6)
Total deferred tax liabilities	(180.6)		(141.2)
Net deferred tax assets	$	(19.7)	$	9.4
Reported As:
Deferred tax assets	$	81.5	$	84.7
Deferred tax liabilities	(101.2)		(75.3)
Net deferred tax assets	$	(19.7)	$	9.4

Schedule of Income Taxes Paid

Income taxes paid were as follows:

	Fiscal Years
(In millions)	2020		2019		2018
Federal income taxes paid, net	$	37.5	$	50.5	$	10.6
State, income taxes paid, net	(0.1)		11.9		7.2
Foreign income taxes paid, net	59.7		66.1		68.2
Total income taxes paid, net	$	97.1	$	128.5	$	86.0

Schedule of Changes in Unrecognized Tax Benefits

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

	Fiscal Years
(In millions)	2020		2019		2018
Unrecognized tax benefits balance–beginning of fiscal year	$	49.8	$	43.5	$	42.7
Additions based on tax positions related to a prior year	6.5		0.2		1.1
Reductions based on tax positions related to a prior year	(10.8)		(0.8)		(3.0)
Additions based on tax positions related to the current year	6.1		13.2		14.8
Settlements	(2.2)		—		(2.8)
Reductions resulting from the expiration of the applicable statute of limitations	(6.5)		(6.3)		(9.3)
Unrecognized tax benefits balance–end of fiscal year	$	42.9	$	49.8	$	43.5