XML 33 R16.htm IDEA: XBRL DOCUMENT
v3.25.3

Income Taxes | 12 Months Ended
--- | ---
Oct. 03, 2025
Income Tax Disclosure [Abstract] |
INCOME TAXES | 8. INCOME TAXES Income before income taxes consists of the following components (in millions):
| Fiscal Years Ended
| October 3, 2025 |  | September 27, 2024 |  | September 29, 2023
United States | $ | 133.5 |  |  | $ | 1.9 |  |  | $ | 484.9 |
Foreign | 393.2 |  |  | 634.5 |  |  | 593.9 |
Income before income taxes | $ | 526.7 |  |  | $ | 636.4 |  |  | $ | 1,078.8 |
The provision for income taxes consists of the following components (in millions):
| Fiscal Years Ended
| October 3, 2025 |  | September 27, 2024 |  | September 29, 2023
Current tax expense: |  |  |  |  |
Federal | $ | 45.3 |  |  | $ | 79.0 |  |  | $ | 164.4 |
State | 0.1 |  |  | 0.2 |  |  | 0.1 |
Foreign | 59.5 |  |  | 60.8 |  |  | 74.4 |
| 104.9 |  |  | 140.0 |  |  | 238.9 |
Deferred tax expense (benefit): |  |  |  |  |
Federal | (80.8) |  |  | (120.5) |  |  | (102.4) |
State | — |  |  | (0.5) |  |  | (0.1) |
Foreign | 25.5 |  |  | 21.4 |  |  | (40.4) |
| (55.3) |  |  | (99.6) |  |  | (142.9) |
Provision for income taxes | $ | 49.6 |  |  | $ | 40.4 |  |  | $ | 96.0 |
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
| October 3, 2025 |  | September 27, 2024 |  | September 29, 2023
Tax expense at United States statutory rate | $ | 110.6 |  |  | $ | 133.6 |  |  | $ | 226.5 |
Foreign tax rate difference | (22.0) |  |  | (84.7) |  |  | (90.7) |
Effect of stock compensation | 10.2 |  |  | 11.3 |  |  | 16.0 |
Research and development credits | (44.5) |  |  | (28.7) |  |  | (29.7) |
Change in tax reserve | (1.4) |  |  | 11.1 |  |  | 8.1 |
Global Intangible Low-Taxed Income | 4.0 |  |  | 18.1 |  |  | 16.3 |
Foreign Derived Intangible Income | (44.7) |  |  | (49.3) |  |  | (65.9) |
Section 162(m) limitation | 15.8 |  |  | 10.6 |  |  | 10.9 |
Remeasurement of concessionary tax rate | 19.0 |  |  | — |  |  | — |
Other, net | 2.6 |  |  | 18.4 |  |  | 4.5 |
Provision for income taxes | $ | 49.6 |  |  | $ | 40.4 |  |  | $ | 96.0 |
The Company operated in foreign jurisdictions with income tax rates lower than the United States tax rate of 21.0% for fiscal 2025, fiscal 2024, and fiscal 2023. The Company had accrued $56.3 million of the deemed repatriation tax in short-term liabilities within the Consolidated Balance Sheets as of October 3, 2025. The Company had accrued $46.1 million and $57.0 million of the deemed repatriation tax in short-term and long-term liabilities within the Consolidated Balance Sheets, respectively, as of September 27, 2024. The Company operates under a tax holiday in Singapore, which is effective through September 30, 2030. The current tax holiday is conditioned upon the Company’s compliance with certain conditions, including employment and investment thresholds in Singapore. The impact of the tax holiday decreased Singapore taxes owed by $6.6 million, $67.7 million, and $66.0 million during fiscal 2025, fiscal 2024, and fiscal 2023, respectively, which resulted in tax benefits of $0.04, $0.42, and $0.41 of diluted earnings per share, respectively. The decrease in tax benefits during fiscal 2025 was due to an increase in the concessionary tax rate. Deferred income tax assets and liabilities consist of the tax effects of temporary differences related to the following (in millions):
| As of
| October 3, 2025 |  | September 27, 2024
Deferred tax assets: |  |  |
Inventory | $ | 24.4 |  |  | $ | 44.5 |
Accrued compensation and benefits | 18.6 |  |  | 16.5 |
Product returns, allowances, and warranty | 5.1 |  |  | 5.5 |
Share-based and other deferred compensation | 32.4 |  |  | 25.3 |
Net operating loss carry forwards | 6.4 |  |  | 6.4 |
Tax credits | 179.6 |  |  | 165.7 |
Lease liabilities | 48.9 |  |  | 46.1 |
R&D capitalization | 257.6 |  |  | 170.4 |
Intangible assets | 43.6 |  |  | 50.0 |
Other, net | 15.8 |  |  | 4.8 |
Deferred tax assets | 632.4 |  |  | 535.2 |
Less valuation allowance | (186.8) |  |  | (174.1) |
Net deferred tax assets | 445.6 |  |  | 361.1 |
Deferred tax liabilities: |  |  |
Property, plant, and equipment | (48.0) |  |  | (22.5) |
Right of use assets | (50.1) |  |  | (47.0) |
Net deferred tax liabilities | (98.1) |  |  | (69.5) |
Total net deferred tax assets | $ | 347.5 |  |  | $ | 291.6 |
The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows (in millions):
| As of
| October 3, 2025 |  | September 27, 2024
Deferred tax assets | $ | 375.6 |  |  | $ | 303.5 |
Deferred tax liabilities | (28.1) |  |  | (11.9) |
Net deferred tax assets | $ | 347.5 |  |  | $ | 291.6 |
In accordance with GAAP, management has determined that it is more likely than not that a portion of the Company’s historic and current year income tax benefits will not be realized. As of October 3, 2025, the Company has a valuation allowance of $186.8 million. This valuation allowance is comprised of $170.2 million related to United States federal and state tax attributes and $16.6 million related to foreign deferred tax assets. The United States tax credits relate primarily to California research tax credits that can be carried forward indefinitely, for which the Company has provided a full valuation allowance. The Company does not anticipate sufficient taxable income or tax liability to utilize the United States and foreign credits. If these benefits are recognized in a future period, the valuation allowance on deferred tax assets will be reversed and up to a $186.8 million income tax benefit may be recognized. The Company will need to generate $1.6 billion of future United States federal taxable income to utilize its United States deferred tax assets, net of deferred tax liabilities and excluding state deferred tax assets with a full valuation allowance, as of October 3, 2025. The Company believes that future reversals of taxable temporary differences, and its forecast of continued earnings in its domestic and foreign jurisdictions, support its decision to not record a valuation allowance on other deferred tax assets. The Company will continue to assess its valuation allowance in future periods. The net valuation allowance increased by $12.7 million in fiscal 2025 primarily related to increases in state tax credit carryforwards and foreign tax attributes. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions):
| Unrecognized Tax Benefits
Balance at September 27, 2024 | $ | 62.3 |
Increases based on positions related to prior years | 1.3 |
Decreases based on positions related to prior years | (0.2) |
Increases based on positions related to current year | 8.7 |
Decreases based on positions related to current year | (0.3) |
Decreases based on expirations of statute of limitations | (5.7) |
Decreases based on settlements with taxing authorities | (1.9) |
Balance at October 3, 2025 | $ | 64.2 |
Of the total unrecognized tax benefits at October 3, 2025, $47.7 million would impact the effective tax rate, if recognized. The remaining unrecognized tax benefits would not impact the effective tax rate, if recognized, due to the Company’s valuation allowance on certain tax attributes. The Company anticipates reversals within the next 12 months related to items such as the lapse of the statute of limitations, audit closures, and other items that occur in the normal course of business. Although the Company cannot predict the timing of resolution with taxing authorities, if any, the Company believes it is reasonably possible that its unrecognized tax benefits will be reduced by $5.5 million in the next 12 months due to expiration of the applicable statute of limitations. During fiscal 2025, fiscal 2024, and fiscal 2023, the Company recognized $2.5 million, $5.5 million, and $2.9 million, respectively, of interest or penalties related to unrecognized tax benefits. Accrued interest and penalties of $9.9 million and $11.7 million related to uncertain tax positions have been included in long-term tax liabilities within the Consolidated Balance Sheets as of October 3, 2025, and September 27, 2024, respectively. During fiscal 2023, the Company concluded an Internal Revenue Service examination of its federal income tax returns for the fiscal year ended September 28, 2018 (“fiscal 2018”) and the fiscal year ended September 27, 2019 (“fiscal 2019”). The Company agreed to various adjustments to fiscal 2018 and fiscal 2019 tax returns that resulted in the recognition of net tax expense of $1.6 million during fiscal 2023. The Company’s major tax jurisdictions as of October 3, 2025 are the United States, California, Canada, Mexico, Japan, and Singapore. For the United States, the Company has open tax years dating back to fiscal 2022. For California, the Company has open tax years dating back to fiscal 2008. For Canada, the Company has open tax years dating back to fiscal 2018. For Mexico, the Company has open tax years dating back to fiscal 2019. For Japan, the Company has open tax years dating back to fiscal 2018. For Singapore, the Company has open tax years dating back to fiscal 2020. The Company is subject to audit examinations by the respective taxing authorities on a periodic basis, of which the results could impact its financial position, results of operations, or cash flows. In August 2022, the U.S. government enacted the Inflation Reduction Act, which imposes a corporate alternative minimum tax (“CAMT”) of 15% on corporations with three-year average annual adjusted financial statement income exceeding $1.0 billion. The Company was subject to the provisions of CAMT beginning in fiscal 2024. CAMT had zero impact to the Company’s consolidated financial statements during fiscal 2025 and fiscal 2024. In December 2021, the Organization for Economic Co-operation and Development’s (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) released Global Anti-Base Erosion (“GloBE”) rules under Pillar Two. Many countries have implemented laws based on Pillar Two, which was effective for the Company beginning in fiscal 2025. Pillar Two did not have a material impact on the Company's consolidated financial statements during fiscal 2025. In July 2025, the U.S. government enacted the One Big Beautiful Bill Act (“OBBBA”). The OBBBA contains numerous provisions, including the permanent extension or restoration of certain expiring corporate income tax provisions, originally introduced by the Tax Cuts and Jobs Act of 2017, and incremental modifications to the international tax framework. The OBBBA did not have a material impact on the Company's consolidated financial statements during fiscal 2025.

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 tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration