Income Taxes (Tables)

12 Months Ended

Sep. 27, 2024

Income Tax Disclosure [Abstract]

Income before Income Tax, Domestic and Foreign

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

	Fiscal Years Ended
	September 27, 2024		September 29, 2023		September 30, 2022
United States	$	1.9	$	484.9	$	663.0
Foreign	634.5		593.9		813.6
Income before income taxes	$	636.4	$	1,078.8	$	1,476.6

Components of Income Tax Expense (Benefit)

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

	Fiscal Years Ended
	September 27, 2024		September 29, 2023		September 30, 2022
Current tax expense:
Federal	$	79.0	$	164.4	$	88.7
State	0.2		0.1		0.1
Foreign	60.8		74.4		51.5
	140.0		238.9		140.3
Deferred tax expense (benefit):
Federal	(120.5)		(102.4)		43.9
State	(0.5)		(0.1)		0.1
Foreign	21.4		(40.4)		17.1
	(99.6)		(142.9)		61.1
Provision for income taxes	$	40.4	$	96.0	$	201.4

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 27, 2024		September 29, 2023		September 30, 2022
Tax expense at United States statutory rate	$	133.6	$	226.5	$	310.1
Foreign tax rate difference	(84.7)		(90.7)		(105.3)
Effect of stock compensation	11.3		16.0		(13.1)
Research and development credits	(28.7)		(29.7)		(26.1)
Change in tax reserve	11.1		8.1		7.4
Global Intangible Low-Taxed Income	18.1		16.3		36.1
Foreign Derived Intangible Income	(49.3)		(65.9)		(39.9)
Section 162(m) limitation	10.6		10.9		21.0
Other, net	18.4		4.5		11.2
Provision for income taxes	$	40.4	$	96.0	$	201.4

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):

	As of
	September 27, 2024		September 29, 2023
Deferred tax assets:
Inventory	$	44.5	$	24.1
Accrued compensation and benefits	16.5		14.4
Product returns, allowances, and warranty	5.5		7.0
Share-based and other deferred compensation	25.3		24.5
Net operating loss carry forwards	6.4		12.2
Tax credits	165.7		155.7
Operating leases	46.1		45.6
R&D capitalization	170.4		95.3
Intangible assets	50.0		24.4
Other, net	4.8		6.8
Deferred tax assets	535.2		410.0
Less valuation allowance	(174.1)		(164.2)
Net deferred tax assets	361.1		245.8
Deferred tax liabilities:
Property, plant, and equipment	(22.5)		(18.3)
Operating leases	(47.0)		(44.3)
Net deferred tax liabilities	(69.5)		(62.6)
Total net deferred tax assets	$	291.6	$	183.2

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

	As of
	September 27, 2024		September 29, 2023
Deferred tax assets	$	303.5	$	192.3
Deferred tax liabilities	(11.9)		(9.1)
Net deferred tax assets	$	291.6	$	183.2

Changes in Unrecognized Tax Benefits

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, 2023	$	57.9
Increases based on positions related to prior years	18.4
Decreases based on positions related to prior years	(7.7)
Increases based on positions related to current year	7.9
Decreases based on expirations of statute of limitations	(8.1)
Decreases based on settlements with taxing authorities	(6.1)
Balance at September 27, 2024	$	62.3