Income Taxes (Tables)

12 Months Ended

Sep. 28, 2018

Schedule of Income before Income Tax, Domestic and Foreign

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



	Fiscal Years Ended
	September 28, 2018		September 29, 2017		September 30, 2016
United States	$	712.2	$	681.2	$	697.5
Foreign	619.9		575.8		503.1
Income before income taxes	$	1,332.1	$	1,257.0	$	1,200.6

Schedule of Components of Income Tax Expense (Benefit)

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



	Fiscal Years Ended
	September 28, 2018		September 29, 2017		September 30, 2016
Current tax expense (benefit):
Federal	$	347.7	$	215.7	$	181.8
State	0.3		0.3		0.1
Foreign	31.2		24.4		25.8
	379.2		240.4		207.7
Deferred tax expense (benefit):
Federal	20.3		5.0		(0.8		)
Foreign	14.2		1.4		(1.5		)
	34.5		6.4		(2.3		)

Provision for income taxes	$	413.7	$	246.8	$	205.4

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 28, 2018			September 29, 2017			September 30, 2016
Tax expense at United States statutory rate	$	327.4		$	439.9		$	420.2
Foreign tax rate difference	(111.9		)	(174.6		)	(160.8		)
Tax on deemed repatriation	224.6			—			—
Effect of stock compensation	(25.6		)	—			—
Change of tax rate on deferred taxes	18.3			—			—
Research and development credits	(19.9		)	(16.3		)	(33.7		)
Change in tax reserve	6.7			12.6			(2.5		)
Domestic production activities deduction	(13.9		)	(19.8		)	(19.1		)
Other, net	8.0			5.0			1.3
Provision for income taxes	$	413.7		$	246.8		$	205.4

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 28, 2018			September 29, 2017
Deferred tax assets:
Inventory	$	5.7		$	7.4
Bad debts	1.2			0.1
Accrued compensation and benefits	4.9			7.1
Product returns, allowances and warranty	4.6			5.2
Restructuring	—			0.1
Intangible assets	—			10.6
Share-based and other deferred compensation	26.1			40.2
Net operating loss carry forwards	15.5			7.7
Non-United States tax credits	20.3			20.1
State tax credits	97.0			71.0
Property, plant and equipment	9.1			7.9
Other, net	3.3			2.7
Deferred tax assets	187.7			180.1
Less valuation allowance	(118.6		)	(90.9		)
Net deferred tax assets	69.1			89.2
Deferred tax liabilities:
Prepaid insurance	(0.6		)	(0.9		)
Property, plant and equipment	(25.6		)	(24.8		)
Intangible assets	(19.3		)	(6.2		)
Other, net	(2.0		)	—
Net deferred tax liabilities	(47.5		)	(31.9		)
Total net deferred tax assets	$	21.6		$	57.3

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 September 29, 2017	$	90.4
Increases based on positions related to prior years	13.5
Decreases based on positions related to prior years	(0.5		)
Increases based on positions related to current year	0.5
Decreases relating to settlements with taxing authorities	—
Decreases relating to lapses of applicable statutes of limitations	(10.5		)
Balance at September 28, 2018	$	93.4