Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 30, 2018 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Skyworks Solutions, Inc. | |
Entity Central Index Key | 4,127 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-28 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 182,074,657 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Net revenue | $ 913.4 | $ 851.7 | $ 1,965.3 | $ 1,766 |
Cost of goods sold | 454.7 | 426.3 | 969.8 | 876.7 |
Gross profit | 458.7 | 425.4 | 995.5 | 889.3 |
Operating expenses: | ||||
Research and development | 106.7 | 89.4 | 204.7 | 171.4 |
Selling, general and administrative | 57.5 | 47.8 | 108.8 | 98.7 |
Amortization of acquisition-related intangibles | 4.1 | 7 | 8.1 | 15.5 |
Restructuring and other charges | 1 | 0 | 1 | 0.6 |
Total operating expenses | 169.3 | 144.2 | 322.6 | 286.2 |
Operating income | 289.4 | 281.2 | 672.9 | 603.1 |
Other income (expense), net | 2.9 | 0.2 | 5 | (0.6) |
Income before income taxes | 292.3 | 281.4 | 677.9 | 602.5 |
Provision for income taxes | 16.3 | 56.5 | 331.5 | 119.8 |
Net income | $ 276 | $ 224.9 | $ 346.4 | $ 482.7 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.51 | $ 1.22 | $ 1.89 | $ 2.61 |
Diluted (in dollars per share) | $ 1.50 | $ 1.20 | $ 1.87 | $ 2.58 |
Weighted average shares: | ||||
Basic (in shares) | 182.5 | 184.8 | 182.8 | 184.8 |
Diluted (in shares) | 184.3 | 187.1 | 184.9 | 187.2 |
Cash dividends declared and paid per share (usd per share) | $ 0.32 | $ 0.28 | $ 0.64 | $ 0.56 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 276 | $ 224.9 | $ 346.4 | $ 482.7 |
Other comprehensive income | ||||
Fair value of investments | 0 | 0 | 0 | 0.9 |
Foreign currency translation adjustment | (0.3) | (0.3) | (0.3) | 0.7 |
Comprehensive income | $ 275.7 | $ 224.6 | $ 346.1 | $ 484.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 30, 2018 | Sep. 29, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,881.3 | $ 1,616.8 |
Receivables, net of allowance for doubtful accounts of $0.5 and $0.5, respectively | 367.2 | 454.7 |
Inventory | 466.4 | 493.5 |
Other current assets | 96 | 68.7 |
Total current assets | 2,810.9 | 2,633.7 |
Property, plant and equipment, net | 907.1 | 882.3 |
Goodwill | 883 | 883 |
Intangible assets, net | 62.7 | 67.8 |
Deferred tax assets, net | 41.2 | 66.5 |
Other assets | 40.2 | 40.3 |
Total assets | 4,745.1 | 4,573.6 |
Current liabilities: | ||
Accounts payable | 198.4 | 258.4 |
Accrued compensation and benefits | 66.5 | 68.1 |
Other current liabilities | 53.6 | 61.4 |
Total current liabilities | 318.5 | 387.9 |
Long-term tax liabilities | 321.2 | 92.9 |
Other long-term liabilities | 35.2 | 27.1 |
Total liabilities | 674.9 | 507.9 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, no par value: 25.0 shares authorized, no shares issued | 0 | 0 |
Common stock, $0.25 par value; 525.0 shares authorized; 228.0 shares issued and 182.1 shares outstanding at March 30, 2018, and 226.0 shares issued and 183.1 shares outstanding at September 29, 2017 | 45.5 | 45.8 |
Additional paid-in capital | 3,002.4 | 2,893.8 |
Treasury stock, at cost | (2,255.7) | (1,925) |
Retained earnings | 3,286.8 | 3,059.6 |
Accumulated other comprehensive loss | (8.8) | (8.5) |
Total stockholders’ equity | 4,070.2 | 4,065.7 |
Total liabilities and stockholders’ equity | $ 4,745.1 | $ 4,573.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 30, 2018 | Sep. 29, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 0.5 | $ 0.5 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 25 | 25 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized | 525 | 525 |
Common stock, shares issued | 228 | 226 |
Common stock, shares outstanding | 182.1 | 183.1 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 346.4 | $ 482.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation | 66.8 | 43.7 |
Depreciation | 129.6 | 111.2 |
Amortization of intangible assets | 11.1 | 15.5 |
Deferred income taxes | 25.6 | 0.9 |
Excess tax benefit from share-based compensation | 0 | (28.2) |
Changes in assets and liabilities net of acquired balances: | ||
Receivables, net | 87.5 | 48.8 |
Inventory | 26.3 | (21.3) |
Other current and long-term assets | (27.1) | (18.1) |
Accounts payable | (82.2) | 53.2 |
Other current and long-term liabilities | 211 | 36.2 |
Net cash provided by operating activities | 795 | 724.6 |
Cash flows from investing activities: | ||
Capital expenditures | (118.5) | (105) |
Payments for acquisitions, net of cash acquired | 0 | (13.7) |
Payments for Software | (6) | 0 |
Maturity of investments | 0 | 3.2 |
Net cash used in investing activities | (124.5) | (115.5) |
Cash flows from financing activities: | ||
Excess tax benefit from share-based compensation | 0 | 28.2 |
Repurchase of common stock - payroll tax withholdings on equity awards | (46.5) | (44.6) |
Repurchase of common stock - stock repurchase program | (284.2) | (201.7) |
Dividends paid | (117.5) | (104.1) |
Net proceeds from exercise of stock options | 32.3 | 31.9 |
Contribution of common stock to savings and retirement plans | 9.9 | 7.2 |
Payments of contingent consideration | 0 | (2.9) |
Net cash used in financing activities | (406) | (286) |
Net increase in cash and cash equivalents | 264.5 | 323.1 |
Cash and cash equivalents at beginning of period | 1,616.8 | 1,083.8 |
Cash and cash equivalents at end of period | 1,881.3 | 1,406.9 |
Supplemental cash flow disclosures: | ||
Income taxes paid | $ 76.2 | $ 82 |
Description Of Business and Bas
Description Of Business and Basis Of Presentation | 6 Months Ended |
Mar. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Skyworks Solutions, Inc., together with its consolidated subsidiaries (“Skyworks” or the “Company”), is empowering the wireless networking revolution. The Company’s highly innovative analog semiconductors are connecting people, places, and things, spanning a number of new and previously unimagined applications within the automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. Certain information and footnote disclosures, normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. However, in management’s opinion, the financial information reflects all adjustments, including those of a normal recurring nature, necessary to present fairly the results of operations, financial position, and cash flows of the Company for the periods presented. The results of operations, financial position, and cash flows for the Company during the interim periods are not necessarily indicative of those expected for the full year. This information should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 29, 2017, filed with the SEC on November 13, 2017, as amended by Amendment No. 1 to such Annual Report on Form 10-K, filed with the SEC on January 26, 2018 (the “2017 10-K”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, revenue, expenses, comprehensive income and accumulated other comprehensive loss that are reported in these unaudited consolidated financial statements and accompanying disclosures. The Company evaluates its estimates on an ongoing basis using historical experience and other factors, including the current economic environment. Significant judgment is required in determining the reserves for and fair value of items such as overall fair value assessments of assets and liabilities, particularly those classified as Level 2 or Level 3 in the fair value hierarchy, inventory, intangible assets associated with business combinations, share-based compensation, loss contingencies, and income taxes. In addition, significant judgment is required in determining whether a potential indicator of impairment of long-lived assets exists and in estimating future cash flows for any necessary impairment testing. Actual results could differ significantly from these estimates. The Company’s fiscal year ends on the Friday closest to September 30. Fiscal year 2018 consists of 52 weeks and ends on September 28, 2018 . Fiscal year 2017 consisted of 52 weeks and ended on September 29, 2017 . The second quarters of fiscal year 2018 and fiscal year 2017 each consisted of 13 weeks and ended on March 30, 2018 , and March 31, 2017 , respectively. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted ASU 2016-09 at the beginning of the first quarter of fiscal year 2018. As a result of adoption, the Company recognized a discrete income tax benefit of $22.5 million to the income tax provision for excess tax benefits generated by the settlement of share-based awards for the six months ended March 30, 2018. The adoption also resulted in an increase in cash flow from operations and a decrease of cash flow from financing of $22.5 million for the six months ended March 30, 2018 . Prior periods have not been adjusted. The Company has elected to account for forfeitures as they occur and will no longer estimate future forfeitures. The change in accounting for forfeitures was applied using a modified retrospective transition method and resulted in a cumulative-effect adjustment to retained earnings as of the beginning of the first quarter of fiscal year 2018 in the amount of $1.9 million . Forfeitures in the future will now be recorded as a benefit in the period they are realized. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The annual or interim goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and an impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company early adopted ASU 2017-04 during the second quarter of 2018 and applied it prospectively, as permitted by the standard. The adoption of this standard did not impact the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We will adopt this guidance during the first quarter of fiscal year 2019 and currently expect to apply the modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to the opening retained earnings balance. We have established a cross-functional team to assess the potential impact of the new revenue standard. The assessment process consists of reviewing our current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to our revenue contracts and identifying appropriate changes to the business processes, systems and controls to support revenue recognition and disclosure requirements under the new standard. We are continuing to evaluate the potential impact on our business processes, systems, controls and our consolidated financial statements of the new revenue standard. Based on our preliminary assessments, we do not expect the new guidance to have a material impact on the nature, amount, and timing of our revenue recognition. As we continue to assess the impact of the new guidance on our revenue contracts with our customers and finalize our evaluation of any changes to our accounting policies, internal controls and footnote disclosures, we may identify additional areas of impact and may revise the results of our preliminary assessment. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU requires lessees to reflect most leases on their balance sheet as assets and obligations. The effective date for the standard is for fiscal years beginning after December 15, 2018, with early adoption permitted. The standard is to be applied under the modified retrospective method, with elective reliefs, which requires application of the new guidance for all periods presented. We are currently evaluating the effect that ASU 2016-02 will have on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), (“ASU 2016-15”). This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect that ASU 2016-15 will have on the consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-entity Transfers of an Asset Other than Inventory (“ASU 2016-16”). This ASU provides guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The effective date for the standard is for fiscal years beginning after December, 15, 2017, on a modified retrospective basis, and early adoption is permitted. We are currently evaluating the effect ASU 2016-16 will have on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting. This ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The effective date for the standard is for interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We are currently evaluating the potential impact of this standard on the consolidated financial statements. Supplemental Cash Flow Information At March 30, 2018 , the Company had $13.9 million accrued to other long-term liabilities for capital equipment, and $22.2 million accrued to accounts payable for capital equipment. These amounts accrued for capital equipment purchases have been excluded from the consolidated statements of cash flows for the six months ended March 30, 2018 , and are expected to be paid in subsequent periods. Certain prior period amounts in the condensed consolidated statements of cash flows have been reclassified to conform to current period presentation. The description “Contribution of common shares to employee savings plan” has been reclassified from net cash provided by operating activities to net cash used in financing activities. |
Fair Value
Fair Value | 6 Months Ended |
Mar. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company groups its financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data. • Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by the Company. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The Company measures certain assets and liabilities at fair value on a recurring basis such as its financial instruments. There have been no transfers between Level 1, 2 or 3 assets or liabilities during the three and six months ended March 30, 2018 . Contingent consideration related to business combinations is recorded as a Level 3 liability because management uses significant judgments and unobservable inputs to determine the fair value. The Company reassesses the fair value of its contingent consideration liabilities on a quarterly basis and records any fair value adjustments to earnings in the period that they are determined. Assets and liabilities recorded at fair value on a recurring basis consisted of the following (in millions): As of March 30, 2018 As of September 29, 2017 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Money market funds $ 688.2 $ 688.2 $ — $ — $ 592.6 $ 592.6 $ — $ — Total $ 688.2 $ 688.2 $ — $ — $ 592.6 $ 592.6 $ — $ — Liabilities Contingent consideration liability recorded for business combinations $ 9.1 $ — $ — $ 9.1 $ 11.9 $ — $ — $ 11.9 Total $ 9.1 $ — $ — $ 9.1 $ 11.9 $ — $ — $ 11.9 The following table summarizes changes to the fair value of the Level 3 liabilities (in millions): Contingent consideration Balance as of September 29, 2017 $ 11.9 Decreases to contingent consideration liability recorded for business combinations (2.8 ) Balance as of March 30, 2018 $ 9.1 Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company’s non-financial assets and liabilities, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and are subsequently re-measured if there are indicators of impairment. There were no indicators of impairment identified during the three and six months ended March 30, 2018 . |
Inventory
Inventory | 6 Months Ended |
Mar. 30, 2018 | |
Inventory, Net [Abstract] | |
INVENTORY | INVENTORY Inventory consists of the following (in millions): As of March 30, September 29, Raw materials $ 19.0 $ 24.6 Work-in-process 262.5 330.6 Finished goods 173.9 123.0 Finished goods held on consignment by customers 11.0 15.3 Total inventory $ 466.4 $ 493.5 |
Property, Plant And Equipment
Property, Plant And Equipment | 6 Months Ended |
Mar. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consists of the following (in millions): As of March 30, September 29, Land and improvements $ 11.6 $ 11.6 Buildings and improvements 172.3 137.8 Furniture and fixtures 31.2 29.5 Machinery and equipment 1,834.7 1,715.3 Construction in progress 149.0 164.8 Total property, plant and equipment, gross 2,198.8 2,059.0 Accumulated depreciation (1,291.7 ) (1,176.7 ) Total property, plant and equipment, net $ 907.1 $ 882.3 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 6 Months Ended |
Mar. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS There were no changes to the carrying amount of goodwill during the three and six months ended March 30, 2018 . The Company tests its goodwill for impairment annually as of the first day of its fourth fiscal quarter and in interim periods if certain events occur indicating the carrying value of goodwill may be impaired. There were no indicators of impairment noted during the three and six months ended March 30, 2018 . Intangible assets consist of the following (in millions): As of As of Weighted March 30, 2018 September 29, 2017 Gross Accumulated Net Gross Accumulated Net Customer relationships 5 $ 78.5 $ (65.7 ) $ 12.8 $ 78.5 $ (63.4 ) $ 15.1 Developed technology and other 5 150.2 (116.4 ) 33.8 150.2 (110.9 ) 39.3 Trademarks 3 1.6 (0.5 ) 1.1 1.6 (0.3 ) 1.3 Internally developed software 3 18.0 (3.0 ) 15.0 12.1 — 12.1 Total intangible assets $ 248.3 $ (185.6 ) $ 62.7 $ 242.4 $ (174.6 ) $ 67.8 Annual amortization expense for the next five fiscal years related to intangible assets is expected to be as follows (in millions): Remaining 2018 2019 2020 2021 2022 Thereafter Amortization expense $ 10.7 $ 20.1 $ 17.4 $ 8.5 $ 0.5 $ 5.5 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following components (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, United States income taxes $ 7.8 $ 51.7 $ 312.7 $ 108.2 Foreign income taxes 8.5 4.8 18.8 11.6 Provision for income taxes $ 16.3 $ 56.5 $ 331.5 $ 119.8 Effective tax rate 5.6 % 20.1 % 48.9 % 19.9 % The difference between the Company’s effective tax rate and the 24.6% United States federal statutory rate for the three months ended March 30, 2018 , resulted primarily from a decrease to tax expense of $16.9 million related to an adjustment to the mandatory deemed repatriation tax on foreign earnings, foreign earnings taxed at rates lower than the federal statutory rate, the domestic production activities deduction, research and experimentation tax credits earned, and a benefit of $6.3 million related to windfall stock deductions, partially offset by an increase in tax expense related to a change in the reserve for uncertain tax positions. The difference between the Company’s effective tax rate and the 24.6% United States federal statutory rate for the six months ended March 30, 2018 , resulted primarily from a one-time charge of $240.9 million related to the mandatory deemed repatriation tax on foreign earnings, a one-time charge of $18.5 million related to the revaluation of the deferred tax assets and liabilities related to tax reform, and an increase in tax expense related to a change in the reserve for uncertain tax positions, partially offset by foreign earnings taxed at rates lower than the federal statutory rate, the domestic production activities deduction, research and experimentation tax credits earned, and a benefit of $22.5 million related to windfall stock deductions. On December 22, 2017, the President of the United States signed into law new tax legislation, which includes, among other things, a reduction of the United States corporate tax rate from 35% to 21% , a mandatory deemed repatriation tax on foreign earnings, repeal of the corporate alternative minimum tax and the domestic production activities deduction, and expensing of certain capital investments. The new law makes fundamental changes to the taxation of multinational entities, including a shift from worldwide taxation with deferral to a hybrid territorial system, featuring a participation exemption regime, a minimum tax on low-taxed foreign earnings, and new measures to deter base erosion and promote export from the United States. The Company expects this tax reform to have significant continued impact on its provision for income taxes and is in the process of evaluating the impact. Staff Accounting Bulletin 118 (“SAB 118”), provides a measurement period during which companies may analyze the impacts of newly enacted legislation when the company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the new legislation, not to exceed one year. In accordance with SAB 118, the Company has estimated the impact of the new legislation as it pertains to various items, including a one-time charge of $240.9 million related to the mandatory deemed repatriation tax on foreign earnings and a one-time charge of $18.5 million related to the revaluation of its deferred tax assets and liabilities, using the new federal statutory tax rate of 21% . The Company believes these amounts are reasonable estimates; however these amounts are provisional and are subject to change. Additional time is needed to gather the information necessary to finalize the computations of the impact of the new tax legislation. The changes included in the new tax legislation are broad and complex. The final transition impacts of the new tax legislation may differ from the above estimates, possibly materially, due to, among other things, changes in interpretations of the new tax legislation, any legislative action to address questions that arise because of the new tax legislation, any changes in accounting standards for income taxes or related interpretations in response to the new tax legislation, or any updates or changes to estimates the Company has utilized to calculate the transition impacts. SAB 118 allows for a measurement period of up to one year after the enactment date of the new tax legislation to finalize the recording of the related tax impacts. Accordingly, the Company revised its estimate of the mandatory deemed repatriation tax on foreign earnings by decreasing the one-time charge from $257.8 million for the three months ended December 29, 2017 to $240.9 million for the six months ended March 30, 2018, due to a change in the interpretation of the definition of cash within the computation. The $16.9 million measurement period adjustment reduced the effective tax rate by 5.8% and 2.5% for the three and six months ended March 30, 2018, respectively. The Company will continue to refine this estimate as new information becomes available and continues to anticipate finalizing and recording any adjustments by September 28, 2018. In addition to the introduction of a modified territorial tax system, the Tax Reform Act includes two new sets of provisions aimed at preventing or decreasing U.S. tax base erosion—the global intangible low-taxed income (“GILTI”) provisions and the base erosion and anti-abuse tax (“BEAT”) provisions. The GILTI provisions impose taxes on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company expects to make an accounting policy election to account for GILTI as a component of tax expense in the period in which the Company is subject to the rules and therefore will not provide any deferred tax impacts of GILTI in its consolidated financial statements for the quarter year ended March 30, 2018. The BEAT provisions eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. These BEAT provisions are not effective for the Company until fiscal year 2019. The Company does not presently expect that it will be subject to the minimum tax imposed by the BEAT provisions. Other significant provisions of the Tax Reform Act that are not yet effective and for which we have not completed our analysis, but which may impact the Company's income taxes in future years, include the inclusion of performance-based compensation in determining the excessive compensation limitation and the benefit related to foreign derived intangible income. The reduction of the corporate tax rate to 21% is effective within fiscal year 2018. Therefore, the Company is subject to a blended fiscal year 2018 tax rate of approximately 24.6% , which is computed by using the number of days of the fiscal year during which the Company is subject to the old tax rate of 35% and the number of days the Company is subject to the newly enacted tax rate of 21% . Accrued taxes of $21.4 million and $19.3 million have been included in other current liabilities within the consolidated balance sheets as of March 30, 2018 , and March 31, 2017 , respectively. The $240.9 million deemed repatriation tax is payable over the next eight years, $19.3 million per year for each of the next five years, followed by payments of $36.1 million , $48.1 million , and $60.2 million in years six through eight, respectively. The Company has accrued $222.1 million of the deemed repatriation tax in long-term liabilities within the consolidated balance sheet as of March 30, 2018. The difference between the Company’s effective tax rate and the 35% United States federal statutory rate for the three and six months ended March 31, 2017 , resulted primarily from foreign earnings taxed at rates lower than the federal statutory rate, the domestic production activities deduction, research and experimentation tax credits earned, and benefits from the settlement of a Canadian audit of the fiscal years 2010 and 2011 income tax returns, partially offset by an increase in the Company’s tax expense related to a change in the Company’s reserve for uncertain tax positions. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, various lawsuits, claims and proceedings have been, and may in the future be, instituted or asserted against the Company, including those pertaining to patent infringement, intellectual property, environmental hazards, product liability and warranty, safety and health, employment and contractual matters. The semiconductor industry is characterized by vigorous protection and pursuit of intellectual property rights. From time to time, third parties have asserted and may in the future assert patent, copyright, trademark and other intellectual property rights to technologies that are important to the Company’s business and have demanded and may in the future demand that the Company license their technology. The outcome of any such litigation cannot be predicted with certainty and some such lawsuits, claims or proceedings may be disposed of unfavorably to the Company. Generally speaking, intellectual property disputes often have a risk of injunctive relief, which, if imposed against the Company, could materially and adversely affect the Company’s financial condition, or results of operations. From time to time the Company may also be involved in legal proceedings in the ordinary course of business. The Company monitors the status of legal proceedings and other contingencies on an ongoing basis to ensure loss contingencies are recognized and/or disclosed in its financial statements and footnotes. The Company does not believe there are any pending legal proceedings that are reasonably possible to result in a material loss. The Company is engaged in various legal actions in the normal course of business and, while there can be no assurances, the Company believes the outcome of all pending litigation involving the Company will not have, individually or in the aggregate, a material adverse effect on its business. Guarantees and Indemnifications The Company has made no significant contractual guarantees for the benefit of third parties. However, the Company generally indemnifies its customers from third-party intellectual property infringement litigation claims related to its products and, on occasion, also provides other indemnities related to product sales. In connection with certain facility leases, the Company has indemnified its lessors for certain claims arising from the facility or the lease. The Company indemnifies its directors and officers to the maximum extent permitted under the laws of the state of Delaware. The duration of the indemnities varies, and in many cases is indefinite. The indemnities to customers in connection with product sales generally are subject to limits based upon the amount of the related product sales and in many cases are subject to geographic and other restrictions. In certain instances, the Company’s indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities in the accompanying consolidated balance sheets and does not expect that such obligations will have a material adverse impact on its financial condition or results of operations. |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Mar. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program On January 31, 2018 , the Board of Directors approved a stock repurchase program, pursuant to which the Company is authorized to repurchase up to $1.0 billion of its common stock from time to time prior to January 31, 2020 , on the open market or in privately negotiated transactions, as permitted by securities laws and other legal requirements. This recently authorized stock repurchase program replaces in its entirety the January 17, 2017, stock repurchase program. The timing and amount of any shares of the Company’s common stock that are repurchased under the repurchase program will be determined by the Company’s management based on its evaluation of market conditions and other factors. The repurchase program may be suspended or discontinued at any time. The Company currently expects to fund the repurchase program using the Company’s working capital. During the three months ended March 30, 2018, the Company paid $111.8 million (including commissions) in connection with the repurchase of 1.0 million shares of its common stock (paying an average price of $109.22 per share). During the six months ended March 30, 2018, the Company paid $284.2 million (including commissions) in connection with the repurchase of 2.7 million shares of its common stock (paying an average price of $106.32 per share). As of March 30, 2018, $888.2 million remained available under the existing stock repurchase authorization. Dividends On May 3, 2018 , the Company announced that the Board of Directors had declared a cash dividend on its common stock of $0.32 per share, payable on June 12, 2018 , to the Company’s stockholders of record as of the close of business on May 22, 2018 . During the three and six months ended March 30, 2018, dividends charged to retained earnings were as follows (in millions, except per share data): Per share Total Amount First quarter $ 0.32 $ 58.8 Second quarter 0.32 58.5 Total $ 0.64 $ 117.3 Share-based Compensation The following table summarizes the share-based compensation expense by line item in the Statements of Operations (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Cost of goods sold $ 4.2 $ 3.4 $ 8.3 $ 7.2 Research and development 14.5 8.5 25.7 16.8 Selling, general and administrative 22.3 10.2 32.8 19.7 Total share-based compensation $ 41.0 $ 22.1 $ 66.8 $ 43.7 On November 15, 2017, the Company agreed to potentially issue not more than 1% of its common stock to an unaffiliated third party as a contingent consideration for its role under a multi-year collaboration agreement, upon the achievement of certain product sales milestones. The shares have been valued utilizing a probability weighted series of Black-Scholes pricing models and could be issued after mid-2020. The shares will be marked to estimated fair value each reporting period through earnings. The amount recorded in the statement of operations within selling, general and administrative expense for the six months ended March 30, 2018 , is not material. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share amounts): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Net income $ 276.0 $ 224.9 $ 346.4 $ 482.7 Weighted average shares outstanding – basic 182.5 184.8 182.8 184.8 Dilutive effect of equity based awards 1.8 2.3 2.1 2.4 Weighted average shares outstanding – diluted 184.3 187.1 184.9 187.2 Net income per share – basic $ 1.51 $ 1.22 $ 1.89 $ 2.61 Net income per share – diluted $ 1.50 $ 1.20 $ 1.87 $ 2.58 Anti-dilutive common stock equivalents 0.1 1.0 0.2 1.2 Basic earnings per share are calculated by dividing net income by the weighted average number of shares of the Company’s common stock outstanding during the period. The calculation of diluted earnings per share includes the dilutive effect of equity based awards that were outstanding during the three and six months ended March 30, 2018 , and March 31, 2017 , using the treasury stock method. Certain of the Company’s outstanding share-based awards, noted in the table above, were excluded because they were anti-dilutive, but they could become dilutive in the future. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Mar. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING AND OTHER CHARGES During the six months ended March 30, 2018, the Company recorded restructuring charges of $1.0 million to revise an estimate related to a leased facility included in a previously announced restructuring plan. In addition, the Company paid the $0.2 million in restructuring-related charges that remained accrued at September 29, 2017. |
Description Of Business and B17
Description Of Business and Basis Of Presentation (Policies) | 6 Months Ended |
Mar. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Period | The Company’s fiscal year ends on the Friday closest to September 30. Fiscal year 2018 consists of 52 weeks and ends on September 28, 2018 . Fiscal year 2017 consisted of 52 weeks and ended on September 29, 2017 . The second quarters of fiscal year 2018 and fiscal year 2017 each consisted of 13 weeks and ended on March 30, 2018 , and March 31, 2017 , respectively. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted ASU 2016-09 at the beginning of the first quarter of fiscal year 2018. As a result of adoption, the Company recognized a discrete income tax benefit of $22.5 million to the income tax provision for excess tax benefits generated by the settlement of share-based awards for the six months ended March 30, 2018. The adoption also resulted in an increase in cash flow from operations and a decrease of cash flow from financing of $22.5 million for the six months ended March 30, 2018 . Prior periods have not been adjusted. The Company has elected to account for forfeitures as they occur and will no longer estimate future forfeitures. The change in accounting for forfeitures was applied using a modified retrospective transition method and resulted in a cumulative-effect adjustment to retained earnings as of the beginning of the first quarter of fiscal year 2018 in the amount of $1.9 million . Forfeitures in the future will now be recorded as a benefit in the period they are realized. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The annual or interim goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and an impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company early adopted ASU 2017-04 during the second quarter of 2018 and applied it prospectively, as permitted by the standard. The adoption of this standard did not impact the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We will adopt this guidance during the first quarter of fiscal year 2019 and currently expect to apply the modified retrospective approach, with the cumulative effect of applying the new guidance recognized as an adjustment to the opening retained earnings balance. We have established a cross-functional team to assess the potential impact of the new revenue standard. The assessment process consists of reviewing our current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to our revenue contracts and identifying appropriate changes to the business processes, systems and controls to support revenue recognition and disclosure requirements under the new standard. We are continuing to evaluate the potential impact on our business processes, systems, controls and our consolidated financial statements of the new revenue standard. Based on our preliminary assessments, we do not expect the new guidance to have a material impact on the nature, amount, and timing of our revenue recognition. As we continue to assess the impact of the new guidance on our revenue contracts with our customers and finalize our evaluation of any changes to our accounting policies, internal controls and footnote disclosures, we may identify additional areas of impact and may revise the results of our preliminary assessment. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU requires lessees to reflect most leases on their balance sheet as assets and obligations. The effective date for the standard is for fiscal years beginning after December 15, 2018, with early adoption permitted. The standard is to be applied under the modified retrospective method, with elective reliefs, which requires application of the new guidance for all periods presented. We are currently evaluating the effect that ASU 2016-02 will have on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), (“ASU 2016-15”). This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect that ASU 2016-15 will have on the consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-entity Transfers of an Asset Other than Inventory (“ASU 2016-16”). This ASU provides guidance that changes the accounting for income tax effects of intra-entity transfers of assets other than inventory. Under the new guidance, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. The effective date for the standard is for fiscal years beginning after December, 15, 2017, on a modified retrospective basis, and early adoption is permitted. We are currently evaluating the effect ASU 2016-16 will have on the consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting. This ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The effective date for the standard is for interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. We are currently evaluating the potential impact of this standard on the consolidated financial statements. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Mar. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities recorded at fair value on a recurring basis consisted of the following (in millions): As of March 30, 2018 As of September 29, 2017 Fair Value Measurements Fair Value Measurements Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Money market funds $ 688.2 $ 688.2 $ — $ — $ 592.6 $ 592.6 $ — $ — Total $ 688.2 $ 688.2 $ — $ — $ 592.6 $ 592.6 $ — $ — Liabilities Contingent consideration liability recorded for business combinations $ 9.1 $ — $ — $ 9.1 $ 11.9 $ — $ — $ 11.9 Total $ 9.1 $ — $ — $ 9.1 $ 11.9 $ — $ — $ 11.9 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes changes to the fair value of the Level 3 liabilities (in millions): Contingent consideration Balance as of September 29, 2017 $ 11.9 Decreases to contingent consideration liability recorded for business combinations (2.8 ) Balance as of March 30, 2018 $ 9.1 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Mar. 30, 2018 | |
Inventory, Net [Abstract] | |
Schedule Of Inventories | Inventory consists of the following (in millions): As of March 30, September 29, Raw materials $ 19.0 $ 24.6 Work-in-process 262.5 330.6 Finished goods 173.9 123.0 Finished goods held on consignment by customers 11.0 15.3 Total inventory $ 466.4 $ 493.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Mar. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment | Property, plant and equipment, net consists of the following (in millions): As of March 30, September 29, Land and improvements $ 11.6 $ 11.6 Buildings and improvements 172.3 137.8 Furniture and fixtures 31.2 29.5 Machinery and equipment 1,834.7 1,715.3 Construction in progress 149.0 164.8 Total property, plant and equipment, gross 2,198.8 2,059.0 Accumulated depreciation (1,291.7 ) (1,176.7 ) Total property, plant and equipment, net $ 907.1 $ 882.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Mar. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Excluding Goodwill | Intangible assets consist of the following (in millions): As of As of Weighted March 30, 2018 September 29, 2017 Gross Accumulated Net Gross Accumulated Net Customer relationships 5 $ 78.5 $ (65.7 ) $ 12.8 $ 78.5 $ (63.4 ) $ 15.1 Developed technology and other 5 150.2 (116.4 ) 33.8 150.2 (110.9 ) 39.3 Trademarks 3 1.6 (0.5 ) 1.1 1.6 (0.3 ) 1.3 Internally developed software 3 18.0 (3.0 ) 15.0 12.1 — 12.1 Total intangible assets $ 248.3 $ (185.6 ) $ 62.7 $ 242.4 $ (174.6 ) $ 67.8 |
Schedule Of Expected Annual Amortization Expense Related To Intangible Assets For The Next Five Years | Annual amortization expense for the next five fiscal years related to intangible assets is expected to be as follows (in millions): Remaining 2018 2019 2020 2021 2022 Thereafter Amortization expense $ 10.7 $ 20.1 $ 17.4 $ 8.5 $ 0.5 $ 5.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Mar. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following components (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, United States income taxes $ 7.8 $ 51.7 $ 312.7 $ 108.2 Foreign income taxes 8.5 4.8 18.8 11.6 Provision for income taxes $ 16.3 $ 56.5 $ 331.5 $ 119.8 Effective tax rate 5.6 % 20.1 % 48.9 % 19.9 % |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 6 Months Ended |
Mar. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Dividends Declared | During the three and six months ended March 30, 2018, dividends charged to retained earnings were as follows (in millions, except per share data): Per share Total Amount First quarter $ 0.32 $ 58.8 Second quarter 0.32 58.5 Total $ 0.64 $ 117.3 |
Schedule of share-based compensation expense | The following table summarizes the share-based compensation expense by line item in the Statements of Operations (in millions): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Cost of goods sold $ 4.2 $ 3.4 $ 8.3 $ 7.2 Research and development 14.5 8.5 25.7 16.8 Selling, general and administrative 22.3 10.2 32.8 19.7 Total share-based compensation $ 41.0 $ 22.1 $ 66.8 $ 43.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share | he following table sets forth the computation of basic and diluted earnings per share (in millions, except per share amounts): Three Months Ended Six Months Ended March 30, March 31, March 30, March 31, Net income $ 276.0 $ 224.9 $ 346.4 $ 482.7 Weighted average shares outstanding – basic 182.5 184.8 182.8 184.8 Dilutive effect of equity based awards 1.8 2.3 2.1 2.4 Weighted average shares outstanding – diluted 184.3 187.1 184.9 187.2 Net income per share – basic $ 1.51 $ 1.22 $ 1.89 $ 2.61 Net income per share – diluted $ 1.50 $ 1.20 $ 1.87 $ 2.58 Anti-dilutive common stock equivalents 0.1 1.0 0.2 1.2 |
Description Of Business and B25
Description Of Business and Basis Of Presentation (Details) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of weeks in fiscal year | 1 year | 1 year | ||
Number of weeks in fiscal quarter | 3 months | 3 months |
Description Of Business and B26
Description Of Business and Basis Of Presentation (New Accounting Pronouncements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 29, 2017 | Mar. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | $ 22.5 | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 22.5 | |
New Accounting Pronouncement or Change in Accounting Principle, Description of Prior-period Information Retrospectively Adjusted | 1.9 |
Description Of Business and B27
Description Of Business and Basis Of Presentation (Supplemental Cash Flow Information) (Details) $ in Millions | 6 Months Ended |
Mar. 30, 2018USD ($) | |
Supplemental Cash Flow Elements [Abstract] | |
Asset Retirement Obligations, Noncurrent | $ 13.9 |
Capital Expenditures Incurred but Not yet Paid | $ 22.2 |
Fair Value (Schedule Of Financi
Fair Value (Schedule Of Financial Instruments Measured At Fair Value On Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Mar. 30, 2018 | Sep. 29, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 688.2 | $ 592.6 |
Total | 688.2 | 592.6 |
Contingent consideration liability recorded for business combinations | 9.1 | 11.9 |
Total | 9.1 | 11.9 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 688.2 | 592.6 |
Total | 688.2 | 592.6 |
Contingent consideration liability recorded for business combinations | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Total | 0 | 0 |
Contingent consideration liability recorded for business combinations | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Total | 0 | 0 |
Contingent consideration liability recorded for business combinations | 9.1 | 11.9 |
Total | $ 9.1 | $ 11.9 |
Fair Value (Fair Value Liabilit
Fair Value (Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation) (Details) - Fair Value, Measurements, Recurring [Member] $ in Millions | 6 Months Ended |
Mar. 30, 2018USD ($) | |
Fair Value, Liabilities [Roll Forward] | |
Balance as of September 29, 2017 | $ 11.9 |
Balance as of March 30, 2018 | 9.1 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Liabilities [Roll Forward] | |
Balance as of September 29, 2017 | 11.9 |
Balance as of March 30, 2018 | 9.1 |
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration [Member] | |
Fair Value, Liabilities [Roll Forward] | |
Balance as of September 29, 2017 | 11.9 |
Decreases to contingent consideration liability recorded for business combinations | (2.8) |
Balance as of March 30, 2018 | $ 9.1 |
Fair Value (Fair value transfer
Fair Value (Fair value transfers) (Details) | 6 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value Disclosures [Abstract] | |
Transfer of assets from L1 to L2 | $ 0 |
Transfers of assets from L2 to L1 | 0 |
Transfers of assets into L3 | 0 |
Transfer of liabilities from L1 to L2 | 0 |
Transfers of liabilities from L2 to L1 | $ 0 |
Inventory (Schedule Of Inventor
Inventory (Schedule Of Inventories) (Details) - USD ($) $ in Millions | Mar. 30, 2018 | Sep. 29, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 19 | $ 24.6 |
Work-in-process | 262.5 | 330.6 |
Finished goods | 173.9 | 123 |
Finished goods held on consignment by customers | 11 | 15.3 |
Total inventory | $ 466.4 | $ 493.5 |
Property, Plant and Equipment32
Property, Plant and Equipment (Schedule Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | Mar. 30, 2018 | Sep. 29, 2017 |
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 2,198.8 | $ 2,059 |
Accumulated depreciation | (1,291.7) | (1,176.7) |
Total property, plant and equipment, net | 907.1 | 882.3 |
Land and improvements [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | 11.6 | 11.6 |
Building and improvements [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | 172.3 | 137.8 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | 31.2 | 29.5 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | 1,834.7 | 1,715.3 |
Construction in progress [Member] | ||
Property, Plant and Equipment | ||
Total property, plant and equipment, gross | $ 149 | $ 164.8 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets (Schedule Of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 30, 2018 | Sep. 29, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, Gross Carrying Amount | $ 248.3 | $ 242.4 |
Total intangible assets, Accumulated Amortization | (185.6) | (174.6) |
Total intangible assets, Net Carrying Amount | $ 62.7 | 67.8 |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 3 years | |
Gross Carrying Amount | $ 18 | 12.1 |
Accumulated Amortization | (3) | 0 |
Net Carrying Amount | $ 15 | 12.1 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Gross Carrying Amount | $ 78.5 | 78.5 |
Accumulated Amortization | (65.7) | (63.4) |
Net Carrying Amount | $ 12.8 | 15.1 |
Developed technology and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 5 years | |
Gross Carrying Amount | $ 150.2 | 150.2 |
Accumulated Amortization | (116.4) | (110.9) |
Net Carrying Amount | $ 33.8 | 39.3 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 3 years | |
Gross Carrying Amount | $ 1.6 | 1.6 |
Accumulated Amortization | (0.5) | (0.3) |
Net Carrying Amount | $ 1.1 | $ 1.3 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets (Schedule Of Expected Annual Amortization Expense Related To Intangible Assets For The Next Five Years) (Details) $ in Millions | Mar. 30, 2018USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
Remaining 2,018 | $ 10.7 |
2,019 | 20.1 |
2,020 | 17.4 |
2,021 | 8.5 |
2,022 | 0.5 |
Thereafter | $ 5.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
United States income taxes | $ 7.8 | $ 51.7 | $ 312.7 | $ 108.2 |
Foreign income taxes | 8.5 | 4.8 | 18.8 | 11.6 |
Provision for income taxes | $ 16.3 | $ 56.5 | $ 331.5 | $ 119.8 |
Effective tax rate | 5.60% | 20.10% | 48.90% | 19.90% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 30, 2018 | Dec. 29, 2017 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Federal statutory income tax rate | 24.60% | 35.00% | 24.60% | 35.00% | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 16.9 | $ 257.8 | $ 240.9 | ||
Tax Benefit To Recognize If Valuation Allowance Is Reversed | $ 6.3 | $ 22.5 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 18.5 | ||||
Statutory Tax Rate Due to Change in Legislation | 21.00% | ||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 5.80% | 2.50% | |||
Accrued Income Taxes, Current | $ 21.4 | $ 19.3 | $ 21.4 | $ 19.3 | |
Deferred Tax Liability Not Recognized, Description of Temporary Difference, Undistributed Earnings of Foreign Subsidiaries | 222.1 | ||||
Years One through Five [Member] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 19.3 | ||||
Year Six [Member] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 36.1 | ||||
Year Seven [Member] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 48.1 | ||||
Year Eight [Member] | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 60.2 |
Stockholder's Equity (Share Rep
Stockholder's Equity (Share Repurchase) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jan. 31, 2018 | Mar. 30, 2018 | Mar. 30, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase authorized date | Jan. 31, 2018 | ||
Authorized amount of stock for repurchase | $ 1,000 | ||
Stock repurchase program expiration date | Jan. 31, 2020 | ||
Stock repurchased | $ 111.8 | $ 284.2 | |
Stock repurchased (shares) | 1 | 2.7 | |
Average price of stock repurchased (in dollars per share) | $ 109.22 | $ 106.32 | |
Remaining amount authorized fro stock repurchase | $ 888.2 | $ 888.2 |
Stockholder's Equity (Dividend)
Stockholder's Equity (Dividend) (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 12, 2018 | May 22, 2018 | May 03, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 |
Dividends Payable [Line Items] | ||||||||
Cash dividends declared and paid per share (usd per share) | $ 0.32 | $ 0.32 | $ 0.28 | $ 0.64 | $ 0.56 | |||
Payments of ordinary dividends | $ 58.5 | $ 58.8 | $ 117.3 | |||||
Subsequent Event [Member] | Dividend Declared [Member] | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividend declaration date | May 3, 2018 | |||||||
Dividends declared (usd per share) | $ 0.32 | |||||||
dividends date to be paid | Jun. 12, 2018 | |||||||
Dividends date of record | May 22, 2018 |
Stockholder's Equity (Share Bas
Stockholder's Equity (Share Based Compensation) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Treasury Stock, Shares, Acquired | 1 | 2.7 | ||
Share-based compensation expense | $ 41 | $ 22.1 | $ 66.8 | $ 43.7 |
Cost of sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 4.2 | 3.4 | 8.3 | 7.2 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 14.5 | 8.5 | 25.7 | 16.8 |
Selling, general and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 22.3 | $ 10.2 | $ 32.8 | $ 19.7 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) | 6 Months Ended |
Mar. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 1.00% |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 276 | $ 224.9 | $ 346.4 | $ 482.7 |
Weighted average shares outstanding - basic (shares) | 182.5 | 184.8 | 182.8 | 184.8 |
Dilutive effect of equity based awards (shares) | 1.8 | 2.3 | 2.1 | 2.4 |
Weighted average shares outstanding - diluted (shares) | 184.3 | 187.1 | 184.9 | 187.2 |
Net income per share - basic (usd per share) | $ 1.51 | $ 1.22 | $ 1.89 | $ 2.61 |
Net income per share - diluted (usd per share) | $ 1.50 | $ 1.20 | $ 1.87 | $ 2.58 |
Anti-dilutive common stock equivalents (shares) | 0.1 | 1 | 0.2 | 1.2 |
Restructuring and Other Charg42
Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring and other charges | $ 1 | $ 0 | $ 1 | $ 0.6 |
Payments for restructuring | $ 0.2 |