XML 37 R20.htm IDEA: XBRL DOCUMENT
v3.20.2

Income Taxes | 12 Months Ended
--- | ---
Sep. 27, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Components of earnings before income taxes (in millions):
Fiscal Year Ended | Sep 27, 2020 |  | Sep 29, 2019 |  | Sep 30, 2018
United States | $ | 904.6 |  |  | $ | 3,518.7 |  |  | $ | 4,826.0 |
Foreign | 259.8 |  |  | 947.5 |  |  | 954.0 |
Total earnings before income taxes | $ | 1,164.4 |  |  | $ | 4,466.2 |  |  | $ | 5,780.0 |
Provision/(benefit) for income taxes (in millions):
Fiscal Year Ended | Sep 27, 2020 |  | Sep 29, 2019 |  | Sep 30, 2018
Current taxes: |  |  |  |  |
U.S. federal | $ | 49.9 |  |  | $ | 1,414.3 |  |  | $ | 156.2 |
U.S. state and local | 36.9 |  |  | 447.8 |  |  | 52.0 |
Foreign | 181.4 |  |  | 458.3 |  |  | 327.0 |
Total current taxes | 268.2 |  |  | 2,320.4 |  |  | 535.2 |
Deferred taxes: |  |  |  |  |
U.S. federal | (8.4) |  |  | (1,074.5) |  |  | 633.7 |
U.S. state and local | (4.8) |  |  | (322.4) |  |  | 101.5 |
Foreign | (15.3) |  |  | (51.9) |  |  | (8.4) |
Total deferred taxes | (28.5) |  |  | (1,448.8) |  |  | 726.8 |
Total income tax expense | $ | 239.7 |  |  | $ | 871.6 |  |  | $ | 1,262.0 |
Reconciliation of the statutory U.S. federal income tax rate with our effective income tax rate:
Fiscal Year Ended | Sep 27, 2020 |  | Sep 29, 2019 |  | Sep 30, 2018
Statutory rate | 21.0 | % |  | 21.0 | % |  | 24.5 | %
State income taxes, net of federal tax benefit | 2.2 |  |  | 2.1 |  |  | 2.1 |
Foreign rate differential | (3.2) |  |  | (0.1) |  |  | (0.1) |
Valuation allowances | 10.0 |  |  | — |  |  | — |
Excess tax benefits of stock-based compensation | (4.2) |  |  | (2.1) |  |  | (0.9) |
Change in tax rates | (2.2) |  |  | — |  |  | — |
Charitable contributions | (1.7) |  |  | — |  |  | — |
Foreign derived intangible income | (1.4) |  |  | (1.5) |  |  | — |
Residual tax on foreign earnings | — |  |  | 1.7 |  |  | — |
Tax impacts related to sale of certain operations | — |  |  | (1.3) |  |  | — |
Gain resulting from acquisition of joint venture | — |  |  | — |  |  | (5.8) |
Impact of the Tax Act | — |  |  | — |  |  | 2.8 |
Other, net | 0.1 |  |  | (0.3) |  |  | (0.8) |
Effective tax rate | 20.6 | % |  | 19.5 | % |  | 21.8 | %
As of September 27, 2020, in foreign subsidiaries in which we are partially indefinitely reinvested, the gross taxable temporary difference between the accounting basis and tax basis was approximately $1.4 billion for which there could be up to approximately $280 million of unrecognized tax liability. Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions):
| Sep 27, 2020 |  | Sep 29, 2019
Deferred tax assets: |  |  |
Operating lease liabilities | $ | 2,313.0 |  |  | $ | — |
Stored value card liability and deferred revenue | 1,678.6 |  |  | 1,649.0 |
Intangible assets and goodwill | 248.6 |  |  | 230.0 |
Accrued occupancy costs | — |  |  | 121.6 |
Other | 554.4 |  |  | 413.0 |
Total | $ | 4,794.6 |  |  | $ | 2,413.6 |
Valuation allowance | (239.4) |  |  | (75.1) |
Total deferred tax asset, net of valuation allowance | $ | 4,555.2 |  |  | $ | 2,338.5 |
Deferred tax liabilities: |  |  |
Operating lease, right-of-use assets | (2,191.8) |  |  | — |
Property, plant and equipment | (463.3) |  |  | (400.9) |
Intangible assets and goodwill | (145.1) |  |  | (209.9) |
Other | (123.2) |  |  | (148.3) |
Total | (2,923.4) |  |  | (759.1) |
Net deferred tax asset (liability) | $ | 1,631.8 |  |  | $ | 1,579.4 |
Reported as: |  |  |
Deferred income tax assets | 1,789.9 |  |  | 1,765.8 |
Deferred income tax liabilities (included in Other long-term liabilities) | (158.1) |  |  | (186.4) |
Net deferred tax asset (liability) | $ | 1,631.8 |  |  | $ | 1,579.4 |
The valuation allowances as of September 27, 2020 and September 29, 2019 were primarily related to net operating losses and other deferred tax assets of consolidated foreign subsidiaries. As of September 27, 2020, we had federal net operating loss carryforwards of $75.2 million which have an indefinite carryforward period, state net operating loss carryforwards of $112.8 million which will begin to expire in fiscal 2024, federal tax credit carryforwards of $11.9 million which will begin to expire in fiscal 2029, state tax credit carryforwards of $2.7 million which will begin to expire in fiscal 2024 and foreign net operating loss carryforwards of $317.8 million, of which $150.5 million have an indefinite carryforward period and the remainder expire at various dates starting from fiscal 2021. Uncertain Tax Positions As of September 27, 2020, we had $123.7 million of gross unrecognized tax benefits of which $103.0 million, if recognized, would affect our effective tax rate. We recognized an expense of $3.0 million, a benefit of $2.8 million and a benefit of $0.5 million of interest and penalties in income tax expense, prior to the benefit of the federal tax deduction, for fiscal 2020, 2019 and 2018, respectively. As of September 27, 2020 and September 29, 2019, we had accrued interest and penalties of $13.0 million and $10.0 million, respectively, within our consolidated balance sheets. The following table summarizes the activity related to our unrecognized tax benefits (in millions):
| Sep 27, 2020 |  | Sep 29, 2019 |  | Sep 30, 2018
Beginning balance | $ | 132.1 |  |  | $ | 224.6 |  |  | $ | 196.9 |
Increase related to prior year tax positions | 11.1 |  |  | 3.8 |  |  | 17.5 |
Decrease related to prior year tax positions | (0.5) |  |  | (75.3) |  |  | (41.8) |
Increase related to current year tax positions | 9.8 |  |  | 18.5 |  |  | 62.4 |
Decreases related to settlements with taxing authorities | — |  |  | (16.4) |  |  | (4.5) |
Decrease related to lapsing of statute of limitations | (28.8) |  |  | (23.1) |  |  | (5.9) |
Ending balance | $ | 123.7 |  |  | $ | 132.1 |  |  | $ | 224.6 |
We are currently under examination, or may be subject to examination, by various U.S. federal, state, local and foreign tax jurisdictions for fiscal 2011 through 2019. We are no longer subject to U.S. federal examination for years prior to fiscal 2017. We are no longer subject to U.S. state and local examinations for years prior to fiscal 2011. We are no longer subject to examination in any material international markets prior to 2015. It is reasonably possible that up to $39 million of the Company's gross unrecognized tax benefits may be recognized by the end of fiscal 2021 for reasons such as a lapse of the statute of limitations or resolution of examinations with tax authorities.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration