Income Taxes (Tables)

12 Months Ended

Sep. 29, 2023

Schedule of Income before Income Tax, Domestic and Foreign

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


	Fiscal Years Ended
	September 29, 2023		September 30, 2022		October 1, 2021
United States	$	484.9	$	663.0	$	804.7
Foreign	593.9		813.6		794.0
Income before income taxes	$	1,078.8	$	1,476.6	$	1,598.7

Schedule of Components of Income Tax Expense (Benefit)

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


	Fiscal Years Ended
	September 29, 2023		September 30, 2022		October 1, 2021
Current tax expense:
Federal	$	164.4	$	88.7	$	87.5
State	0.1		0.1		—
Foreign	74.4		51.5		70.7
	238.9		140.3		158.2
Deferred tax expense (benefit):
Federal	(102.4)		43.9		(45.8)
State	(0.1)		0.1		(0.1)
Foreign	(40.4)		17.1		(11.9)
	(142.9)		61.1		(57.8)

Provision for income taxes	$	96.0	$	201.4	$	100.4

Schedule of Effective Income Tax Rate Reconciliation

The actual income tax expense is different than that which would have been computed by applying the federal statutory tax rate to income before income taxes. 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 29, 2023		September 30, 2022		October 1, 2021
Tax expense at United States statutory rate	$	226.5	$	310.1	$	335.7
Foreign tax rate difference	(90.7)		(105.3)		(111.7)
Effect of stock compensation	16.0		(13.1)		(6.7)
Research and development credits	(29.7)		(26.1)		(27.0)
Change in tax reserve	8.1		7.4		(51.5)
Global Intangible Low-Taxed Income	16.3		36.1		25.5
Foreign Derived Intangible Income	(65.9)		(39.9)		(79.7)
Other, net	15.4		32.2		15.8
Provision for income taxes	$	96.0	$	201.4	$	100.4

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 29, 2023		September 30, 2022
Deferred tax assets:
Inventory	$	24.1	$	21.4
Accrued compensation and benefits	14.4		11.6
Product returns, allowances, and warranty	7.0		1.5
Share-based and other deferred compensation	24.5		27.8
Net operating loss carry forwards	12.2		14.0
Non-United States tax credits	15.7		17.0
State tax credits	140.0		138.0
Operating leases	45.6		56.8
R&D capitalization	95.3		—
Intangible assets	34.0		20.4
Property, plant, and equipment	34.5		31.4
Other, net	13.9		8.7
Deferred tax assets	461.2		348.6
Less valuation allowance	(164.2)		(161.4)
Net deferred tax assets	297.0		187.2
Deferred tax liabilities:
Property, plant, and equipment	(52.8)		(59.2)
Intangible assets	(9.6)		(4.7)
Operating leases	(44.3)		(51.5)
Other, net	(7.1)		(39.7)
Net deferred tax liabilities	(113.8)		(155.1)
Total net deferred tax assets	$	183.2	$	32.1

The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows:


	As of
	September 29, 2023		September 30, 2022
Deferred tax assets	$	192.3	$	52.7
Deferred tax liabilities	(9.1)		(20.6)
Net deferred tax asset	$	183.2	$	32.1

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 30, 2022	$	62.5
Increases based on positions related to prior years	25.4
Decreases based on positions related to prior years	(21.7)
Increases based on positions related to current year	3.7
Decreases based on settlements with taxing authorities	(12.0)
Balance at September 29, 2023	$	57.9