Taxes on Earnings (Tables)

12 Months Ended

Sep. 29, 2017

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
	2017		2016		2015
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of federal tax benefit	0.9	%	0.3	%	0.5	%
Non-U.S. income taxed at different rates, net	(8.4	)%	(8.7	)%	(12.6	)%
Other	(2.1	)%	(0.4	)%	(0.5	)%
Effective tax rate	25.4	%	26.2	%	22.4	%

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



	September 29,			September 30,
(In millions)	2017			2016
Deferred Tax Assets:
Deferred revenues	$	29.6		$	29.5
Deferred compensation	45.0			36.5
Product warranty	9.6			9.7
Inventory adjustments	11.1			8.7
Share-based compensation	17.8			22.3
Environmental reserve	3.9			3.6
Accruals and reserves	20.1			13.6
Net operating loss carryforwards	124.4			106.4
Other	29.7			37.1
	291.2			267.4
Valuation allowance	(105.8		)	(79.6		)
Total deferred tax assets	185.4			187.8
Deferred Tax Liabilities:
Tax-deductible goodwill	(27.7		)	(23.2		)
Property, plant and equipment	(13.6		)	(14.4		)
Unremitted earnings of foreign subsidiaries	(16.2		)	(20.2		)
Other	(8.9		)	(17.7		)
Total deferred tax liabilities	(66.4		)	(75.5		)
Net deferred tax assets	$	119.0		$	112.3
Reported As:
Deferred tax assets	$	138.8		$	136.8
Deferred tax liabilities (included in other long-term liabilities)	(19.8		)	(24.5		)
Net deferred tax assets	$	119.0		$	112.3

Income taxes paid were as follows:



	Fiscal Years
(In millions)	2017		2016		2015
Federal income taxes paid, net	$	62.0	$	78.3	$	57.1
State, income taxes paid, net	5.0		5.0		7.2
Foreign income taxes paid, net	77.1		72.6		55.5
Total income taxes paid, net	$	144.1	$	155.9	$	119.8

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



	Fiscal Years
(In millions)	2017			2016			2015
Unrecognized tax benefits balance–beginning of fiscal year	$	40.7		$	39.5		$	49.6
Additions based on tax positions related to a prior year	1.4			0.6			—
Reductions based on tax positions related to a prior year	(0.3		)	(0.8		)	(9.9		)
Additions based on tax positions related to the current year	5.8			6.6			5.7
Settlements	—			—			—
Reductions resulting from the expiration of the applicable statute of limitations	(4.9		)	(5.2		)	(5.9		)
Unrecognized tax benefits balance–end of fiscal year	$	42.7		$	40.7		$	39.5