Income Taxes (Tables)

12 Months Ended

Oct. 02, 2016

Income Tax Disclosure [Abstract]

Pretax Income (Loss)

Pretax income (loss) was generated from the following sources for each of the three fiscal years in the period ended October 2, 2016 (amounts in millions):

	2016			2015			2014
Domestic	$	(112.5	)	$	(14.9	)	$	(62.7	)
Foreign	87.1			111.8			86.6
Total	$	(25.4	)	$	96.9		$	23.9

Provision (Benefit) of Income Taxes

The provision for income taxes consisted of the following components for each of the three fiscal years in the period ended October 2, 2016 (amounts in millions):

	2016			2015		2014
Current:
State	0.2			0.2		0.3
Foreign	4.3			4.2		3.9
Deferred:
Federal	4.1			4.6		(6.5		)
State	0.2			—		(0.2		)
Foreign	(1.6		)	3.3		3.3
	$	7.2		$	12.3	$	0.8

Reconciliation of income Tax Computed at the Federal Statutary Rate

The following is a reconciliation of income tax computed at the federal statutory rate to our actual tax expense for each of the three fiscal years in the period ended October 2, 2016 (amounts in millions):

	2016			2015			2014
Tax computed at federal statutory rate	$	(8.9	)	$	33.9		$	8.4
State taxes, net of federal impact	0.5			(2.1		)	(1.1		)
Foreign income taxed at different rates	(7.0		)	(33.1		)	(24.7		)
Tax credits and incentives	(10.7		)	(5.1		)	(2.8		)
Stock award compensation	(4.6		)	1.3			1.2
Unrecognized tax benefits	30.6			3.7			1.4
Sale/transfer of assets	(45.6		)	—			—
U.S. tax on foreign income	2.0			1.3			4.1
Non-deductible permanent items	6.2			0.9			0.9
Pre-acquisition loss carry forwards	—			—			(11.4		)
Expiration of tax attributes	5.0			—			2.9
Investment in foreign subsidiaries	2.7			(0.5		)	3.6
Withholding taxes	1.1			(0.3		)	0.3
Other differences, net	0.6			(1.0		)	0.4
Valuation allowance	35.3			13.3			17.6
	$	7.2		$	12.3		$	0.8

Components of Deferred Tax Assets (Liabilities)

The tax effected deferred tax assets (liabilities) are comprised of the following components (amounts in millions):

	October 2, 2016			September 27, 2015
Accounts receivable, net	$	2.1		$	1.9
Inventories	18.8			17.5
Accrued employee benefit expenses	10.0			8.4
Net operating losses	216.1			164.6
Tax credits and incentives	238.0			153.5
Accrued other expenses	10.3			9.7
Deferred equity compensation	20.0			18.9
Property and equipment, net	4.4			13.8
Debt issuance costs	20.9			0.3
Other assets	12.3			11.1
Total deferred tax assets	552.9			399.7
Intangible assets	(176.8		)	(137.1		)
Investment in foreign subsidiaries	(2.5		)	—
Total deferred tax liabilities	(179.3		)	(137.1		)
Less valuation allowance	(456.4		)	(250.6		)
	$	(82.8	)	$	12.0

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (amounts in millions):

	October 2, 2016			September 27, 2015			September 28, 2014
Beginning gross unrecognized tax benefits	$	121.8		$	97.7		$	69.6
Additions based on tax positions related to the current year	33.1			3.5			2.4
Additions based on current year acquisitions	132.6			16.2			28.9
Additions based on tax positions of prior years	36.3			4.8			0.4
Reductions for lapses and settlements	(4.8		)	(0.4		)	(3.6		)
Ending gross unrecognized tax benefit	$	319.0		$	121.8		$	97.7