XML 32 R14.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Income Taxes | 12 Months Ended
--- | ---
Sep. 24, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company’s income before income taxes consisted of the following:
|  | Years ended
September 24, 2016 |  | September 26, 2015 |  | September 27, 2014
Domestic |  | $ | 310.7 |  |  | $ | 158.3 |  |  | $ | 95.1 |
Foreign |  | 104.6 |  |  | 18.9 |  |  | (47.0 | )
|  | $ | 415.3 |  |  | $ | 177.2 |  |  | $ | 48.1 |
The provision for income taxes contained the following components:
|  | Years ended
September 24, 2016 |  | September 26, 2015 |  | September 27, 2014
Federal: |  |  |  |  |  |
Current |  | $ | 209.0 |  |  | $ | 185.2 |  |  | $ | 242.2 |
Deferred |  | (122.7 | ) |  | (137.0 | ) |  | (212.5 | )
|  | 86.3 |  |  | 48.2 |  |  | 29.7 |
State: |  |  |  |  |  |
Current |  | 16.6 |  |  | 3.5 |  |  | 22.1 |
Deferred |  | (22.7 | ) |  | (11.0 | ) |  | (24.7 | )
|  | (6.1 | ) |  | (7.5 | ) |  | (2.6 | )
Foreign: |  |  |  |  |  |
Current |  | 14.7 |  |  | 5.7 |  |  | 9.6 |
Deferred |  | (10.4 | ) |  | (0.8 | ) |  | (5.9 | )
|  | 4.3 |  |  | 4.9 |  |  | 3.7 |
|  | $ | 84.5 |  |  | $ | 45.6 |  |  | $ | 30.8 |
The income tax provision differed from the tax provision computed at the U.S. federal statutory rate due to the following:
|  | Years ended
September 24, 2016 |  | September 26, 2015 |  | September 27, 2014
Income tax provision at federal statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Increase (decrease) in tax resulting from: |  |  |  |  |  |
Domestic production activities deduction |  | (5.0 | ) |  | (10.1 | ) |  | (30.6 | )
State income taxes, net of federal benefit |  | 2.0 |  |  | 1.2 |  |  | 4.3 |
Tax credits |  | (3.2 | ) |  | (3.8 | ) |  | (5.2 | )
Unrecognized tax benefits |  | 2.4 |  |  | (1.8 | ) |  | 2.5 |
Cumulative translation adjustment write-off |  | — |  |  | 1.9 |  |  | — |
Non-deductible compensation |  | 0.1 |  |  | 1.9 |  |  | 5.5 |
Foreign rate differential |  | (6.1 | ) |  | (1.6 | ) |  | 10.7 |
Change in state deferred tax rate |  | (1.8 | ) |  | — |  |  | — |
Change in valuation allowance |  | (3.4 | ) |  | 1.0 |  |  | 35.4 |
Other |  | 0.3 |  |  | 2.1 |  |  | 6.3 |
|  | 20.3 | % |  | 25.8 | % |  | 63.9 | %
The Company's effective tax rate in fiscal 2016 was lower than the statutory rate primarily due to earnings in jurisdictions subject to lower tax rates, the domestic production activities deduction benefit, and a change in the valuation allowance related to the sale of a marketable security with a higher tax than book basis. The Company's effective tax rate in fiscal 2015 was lower than the statutory rate primarily due to the domestic production activities deduction benefit. The Company’s effective tax rate in fiscal 2014 was higher than the statutory rate primarily due to unbenefited foreign losses partially offset by the domestic production activities deduction benefit. The Company uses the asset and liability method to account for income taxes in accordance with ASC 740, Income Taxes. Under this method, deferred income taxes are recognized for the future tax consequences of differences between the tax and financial accounting bases of assets and liabilities at each reporting period. Deferred income taxes are based on enacted tax laws and statutory tax rates applicable to the period in which these differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the requirement for entities to separate deferred income tax liabilities and assets into current and noncurrent amounts in the balance sheet. Rather, it requires deferred tax assets and liabilities to be classified as noncurrent in the balance sheet. The Company adopted this standard prospectively in the first quarter of fiscal 2016, and prior periods were not retrospectively adjusted. The Company’s significant deferred tax assets and liabilities were as follows:
|  | September 24, 2016 |  | September 26, 2015
Deferred tax assets |  |  |  |
Net operating loss carryforwards |  | $ | 40.0 |  |  | $ | 45.4 |
Capital losses |  | 19.1 |  |  | 25.7 |
Non-deductible accruals |  | 21.1 |  |  | 16.3 |
Non-deductible reserves |  | 31.1 |  |  | 26.8 |
Stock-based compensation |  | 34.8 |  |  | 24.3 |
Research and other credits |  | 10.7 |  |  | 14.5 |
Nonqualified deferred compensation plan |  | 14.1 |  |  | 11.3 |
Other temporary differences |  | 9.2 |  |  | 10.2 |
|  | 180.1 |  |  | 174.5 |
Less: valuation allowance |  | (46.2 | ) |  | (60.9 | )
|  | $ | 133.9 |  |  | $ | 113.6 |
Deferred tax liabilities |  |  |  |
Depreciation and amortization |  | $ | (1,030.8 | ) |  | $ | (1,171.5 | )
Debt discounts and deferrals |  | (75.1 | ) |  | (100.1 | )
Debt issuance costs |  | (1.3 | ) |  | (1.4 | )
|  | $ | (1,107.2 | ) |  | $ | (1,273.0 | )
|  | $ | (973.3 | ) |  | $ | (1,159.4 | )
Under ASC 740, the Company can only recognize a deferred tax asset for the future benefit to the extent that it is “more likely than not” that these assets will be realized. After considering all available positive and negative evidence, the Company established a valuation allowance against specifically identified deferred tax assets because it is more-likely-than-not that these assets will not be realized. In making this determination, the Company considered numerous factors including historical profitability, estimated future taxable income and the character of such income. The valuation allowance decreased $14.7 million in fiscal 2016 from fiscal 2015 primarily due to a change in the valuation allowance related to the sale of a marketable security with a higher tax than book basis, foreign exchange rate fluctuations, and a change in judgment regarding the realizability of foreign net operating losses. At September 24, 2016, the Company had $13.9 million, $63.9 million and $45.0 million in gross federal, state, and foreign net operating losses, respectively, and $0.3 million, $13.7 million and $1.6 million in federal, state, and foreign credit carryforwards, respectively. These losses and credits expire between 2017 and 2036, except for $44.6 million in losses and $8.9 million in credits that have unlimited carryforward periods. The federal, state, and foreign net operating losses exclude $4.5 million, $151.3 million and $46.5 million, respectively, in net operating losses, that the Company expects will expire unutilized. At September 24, 2016, the Company had $163.6 million in gross unrecognized tax benefits excluding interest, of which $80.1 million, if recognized, would reduce the Company's effective tax rate. At September 26, 2015, the Company had $154.7 million in gross unrecognized tax benefits excluding interest, of which $74.9 million, if recognized, would have reduced the Company's effective tax rate. In the next twelve months it is reasonably possible that the Company will reduce its gross unrecognized tax benefits by up to $1.0 million due to expiring statutes of limitations. The Company’s unrecognized income tax benefits activity for fiscal 2016 and 2015 was as follows:
|  | 2016 |  | 2015
Balance at beginning of fiscal year |  | $ | 154.7 |  |  | $ | 137.0 |
Tax positions related to current year: |  |  |  |
Additions |  | 23.9 |  |  | 11.0 |
Reductions |  | — |  |  | — |
Tax positions related to prior years: |  |  |  |
Additions related to change in estimate |  | 1.1 |  |  | 21.1 |
Reductions |  | (6.9 | ) |  | (10.3 | )
Payments |  | (6.0 | ) |  | (0.8 | )
Lapses in statutes of limitations and settlements |  | (3.2 | ) |  | (3.7 | )
Acquired tax positions: |  |  |  |
Additions related to reserves acquired from acquisitions |  | — |  |  | 0.4 |
Balance as of the end of the fiscal year |  | $ | 163.6 |  |  | $ | 154.7 |
The Company’s policy is to include accrued interest and penalties related to unrecognized tax benefits and income tax liabilities, when applicable, in income tax expense. As of September 24, 2016 and September 26, 2015, gross accrued interest was $13.1 million and $9.9 million, respectively. At September 24, 2016, no significant penalties have been accrued. The Company and its subsidiaries are subject to various federal, state, and foreign income taxes. The Company’s U.S. Federal income tax returns are no longer subject to examination prior to fiscal 2011. State income tax returns are generally no longer subject to examination prior to fiscal year 2012. The Internal Revenue Service concluded its fiscal 2011 federal income tax return examination and commenced its fiscal 2013 and 2014 federal income tax examination in fiscal 2016. The Company is also undergoing tax examinations in Germany for fiscal 2011 through 2014. Massachusetts began a state tax examination for fiscal 2012 through 2013 in fiscal 2016. The Company intends to reinvest, indefinitely, approximately $187.6 million in unremitted foreign earnings. It is not practicable to estimate the additional taxes that may be payable upon repatriation.

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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration