Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consists of the following components (in millions):



	Fiscal Years Ended
	September 30, 2016		October 2, 2015		October 3, 2014
United States	$	697.5	$	602.1	$	346.8
Foreign	503.1		421.5		218.4
Income before income taxes	$	1,200.6	$	1,023.6	$	565.2

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consists of the following (in millions):



	Fiscal Years Ended
	September 30, 2016			October 2, 2015			October 3, 2014
Current tax expense (benefit):
Federal	$	181.8		$	199.5		$	88.2
State	0.1			(0.5		)	(0.5		)
Foreign	25.8			33.9			13.5
	207.7			232.9			101.2
Deferred tax expense (benefit):
Federal	(0.8		)	(2.0		)	12.3
Foreign	(1.5		)	(5.6		)	(6.0		)
	(2.3		)	(7.6		)	6.3

Provision for income taxes	$	205.4		$	225.3		$	107.5

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense as computed at the United States federal statutory income tax rate to the provision for income tax expense is as follows (in millions):



	Fiscal Years Ended
	September 30, 2016			October 2, 2015			October 3, 2014
Tax expense at United States statutory rate	$	420.2		$	358.3		$	197.8
Foreign tax rate difference	(164.1		)	(120.9		)	(77.3		)
Research and development credits	(33.7		)	(15.0		)	(2.8		)
Change in tax reserve	18.9			25.5			11.0
Change in valuation allowance	13.9			4.4			9.8
Domestic production activities deduction	(19.1		)	(19.7		)	(10.9		)
Audit settlements and adjustments	(21.4		)	—			(19.7		)
Other, net	(9.3		)	(7.3		)	(0.4		)
Provision for income taxes	$	205.4		$	225.3		$	107.5

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the tax effects of temporary differences related to the following (in millions):



	Fiscal Years Ended
	September 30, 2016			October 2, 2015
Deferred tax assets:
Current:
Inventory	$	8.1		$	4.9
Bad debts	0.2			0.1
Accrued compensation and benefits	5.4			5.2
Product returns, allowances and warranty	8.6			4.3
Restructuring	0.8			0.1
Other, net	3.1			0.6
Current deferred tax assets	26.2			15.2
Less valuation allowance	(12.2		)	(6.4		)
Net current deferred tax assets	14.0			8.8
Long-term:
Intangible assets	11.6			11.6
Share-based and other deferred compensation	40.2			44.6
Net operating loss carry forwards	7.4			7.4
Non-United States tax credits	14.7			11.5
State tax credits	64.0			53.4
Other, net	2.5			2.4
Long-term deferred tax assets	140.4			130.9
Less valuation allowance	(66.9		)	(58.8		)
Net long-term deferred tax assets	73.5			72.1

Deferred tax assets	166.6			146.1
Less valuation allowance	(79.1		)	(65.2		)
Net deferred tax assets	87.5			80.9
Deferred tax liabilities:
Current:
Prepaid insurance	(0.8		)	(0.8		)
Current deferred tax liabilities	(0.8		)	(0.8		)
Long-term:
Property, plant and equipment	(16.5		)	(10.1		)
Intangible assets	(8.4		)	(8.2		)
Long-term deferred tax liabilities	(24.9		)	(18.3		)

Net deferred tax liabilities	(25.7		)	(19.1		)
Total net deferred tax assets	$	61.8		$	61.8

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

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



	Unrecognized tax benefits
Balance at October 2, 2015	$	81.2
Increases based on positions related to prior years	2.0
Increases based on positions related to current year	19.7
Decreases relating to settlements with taxing authorities	(22.6		)
Decreases relating to lapses of applicable statutes of limitations	(0.6		)
Balance at September 30, 2016	$	79.7