Taxes on Earnings (Tables)

12 Months Ended

Sep. 30, 2016

Taxes on earnings were as follows:

Earnings before taxes are generated from the following geographic areas:

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



	Fiscal Years
	2016		2015		2014
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of federal tax benefit	0.7	%	0.8	%	0.8	%
Non-U.S. income taxed at different rates, net	(7.3	)%	(9.2	)%	(5.2	)%
Other	(0.8	)%	(0.9	)%	(0.9	)%
Effective tax rate	27.6	%	25.7	%	29.7	%

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



	September 30,			October 2,
(In millions)	2016			2015
Deferred Tax Assets:
Deferred revenues	$	30.2		$	28.2
Deferred compensation	38.9			33.5
Product warranty	11.9			10.5
Inventory adjustments	21.5			20.9
Share-based compensation	22.3			22.8
Environmental reserve	4.2			4.3
Accruals and reserves	15.7			14.3
Net operating loss carryforwards	106.6			92.6
Other	39.1			31.7
	290.4			258.8
Valuation allowance	(79.6		)	(69.7		)
Total deferred tax assets	210.8			189.1
Deferred Tax Liabilities:
Tax-deductible goodwill	(24.6		)	(23.3		)
Property, plant and equipment	(25.1		)	(15.5		)
Unremitted earnings of foreign subsidiaries	(20.2		)	(27.9		)
Other	(28.6		)	(34.8		)
Total deferred tax liabilities	(98.5		)	(101.5		)
Net deferred tax assets	$	112.3		$	87.6
Reported As:
Deferred tax assets	138.9			119.4
Deferred tax liabilities (included in other long-term liabilities)	(26.6		)	(31.8		)
Net deferred tax assets	$	112.3		$	87.6

Income taxes paid were as follows:



	Fiscal Years
(In millions)	2016		2015		2014
Federal income taxes paid, net	$	78.3	$	57.1	$	66.2
State, income taxes paid, net	5.0		7.2		7.3
Foreign income taxes paid, net	72.6		55.5		67.3
Total income taxes paid, net	$	155.9	$	119.8	$	140.8

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



	Fiscal Years
(In millions)	2016			2015			2014
Unrecognized tax benefits balance–beginning of fiscal year	$	39.5		$	49.6		$	37.0
Additions based on tax positions related to a prior year	0.6			—			10.7
Reductions based on tax positions related to a prior year	(0.8		)	(9.9		)	(0.3		)
Additions based on tax positions related to the current year	6.6			5.7			8.2
Settlements	—			—			(0.4		)
Reductions resulting from the expiration of the applicable statute of limitations	(5.2		)	(5.9		)	(5.6		)
Unrecognized tax benefits balance–end of fiscal year	$	40.7		$	39.5		$	49.6