Moore state machine

Hi people,
moore state machine definition says that output depends on current state. But while writing state diagram we are going to specify the input transition on arc. Completely perplexed. Can anybody elaborate on this and make me understand.

It's been many years since I've seen a state diagram, but think of two simple examples:
1) Count in binary
2) Count in grey code.

The next state depends on the present state.

e.g. 000, clock, 001, clock, 010, clock, 011

So, as you can see, the NEXT STATE of the machine depends on the previous state.