Income Taxes (Tables)

12 Months Ended

Oct. 03, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for (benefit from) income taxes on income (loss) before income taxes consists of the following (in thousands):

	Fiscal
	2015			2014			2013
Currently payable:
Federal	$	(932	)	$	2,492		$	(1,796	)
State	108			92			(141		)
Foreign	32,189			26,885			27,152
	31,365			29,469			25,215
Deferred:
Federal	(4,327		)	(2,815		)	(4,022		)
State	(200		)	(111		)	(16		)
Foreign	(3,679		)	(6,430		)	(4,036		)
	(8,206		)	(9,356		)	(8,074		)
Provision for income taxes	$	23,159		$	20,113		$	17,141

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) before income taxes consist of (in thousands):

	Fiscal
	2015			2014		2013
United States	$	(13,293	)	$	821	$	(7,142	)
Foreign	112,861			78,398		90,638
Income before income taxes	$	99,568		$	79,219	$	83,496

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the income tax expense at the U.S. Federal statutory rate (35%) to actual income tax expense is as follows (in thousands):

	Fiscal
	2015			2014			2013
Federal statutory tax expense	$	34,849		$	27,727		$	29,223
Valuation allowance	635			841			534
Foreign taxes at rates less than U.S. rates, net	(10,558		)	(6,974		)	(8,219		)
Stock-based compensation	2,150			1,326			1,292
State income taxes, net of federal income tax benefit	(38		)	58			(143		)
Research and development credit	(2,979		)	(1,797		)	(4,131		)
Deferred compensation	(133		)	(778		)	(257		)
Release of unrecognized tax benefits	(39		)	(51		)	(407		)
Release of interest accrued for unrecognized tax benefits	(38		)	(289		)	(160		)
Other	(690		)	50			(591		)
Provision for income taxes	$	23,159		$	20,113		$	17,141
Effective tax rate	23.3		%	25.4		%	20.5		%

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were (in thousands):

	Fiscal year-end
	2015			2014
Deferred tax assets:
Reserves and accruals not currently deductible	$	31,067		$	29,060
Operating loss carryforwards and tax credits	53,386			65,643
Deferred service revenue	2,144			2,097
Inventory capitalization	1,827			1,616
Stock-based compensation	6,128			6,573
Competent authority offset to transfer pricing tax reserves	4,328			4,328
Other	2,418			—
Total gross deferred tax assets	101,298			109,317
Valuation allowance	(15,556		)	(14,403		)
Total net deferred tax assets	85,742			94,914
Deferred tax liabilities:
Gain on issuance of stock by subsidiary	20,859			20,759
Depreciation and amortization	5,117			9,579
Accumulated translation adjustment	2,229			1,357
Other	—			5,012
Total gross deferred tax liabilities	28,205			36,707
Net deferred tax assets	$	57,537		$	58,207

Schedule of Deferred Tax Assets

The net deferred tax asset is classified on the consolidated balance sheets as follows (in thousands):

	Fiscal year-end
	2015			2014
Current deferred income tax assets	$	28,118		$	27,134
Current deferred income tax liabilities	(9		)	(32		)
Non-current deferred income tax assets	32,136			37,616
Non-current deferred income tax liabilities	(2,708		)	(6,511		)
Net deferred tax assets	$	57,537		$	58,207

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

	Fiscal year-end
	2015			2014			2013
Balance as of the beginning of the year	$	21,893		$	21,378		$	25,967
Tax positions related to current year:
Additions	311			346			1,008
Reductions	—			—			—
Tax positions related to prior year:
Additions	855			235			1,127
Reductions	—			—			—
Settlements	—			—			—
Lapses in statutes of limitations	(521		)	(66		)	(6,724		)
Balance as of end of year	$	22,538		$	21,893		$	21,378

Summary of Income Tax Examinations

A summary of the fiscal tax years that remain subject to examination, as of October 3, 2015, for our major tax jurisdictions is:

United States—Federal	2011—forward
United States—Various States	2011—forward
Netherlands	2010—forward
Germany	2006—forward
Japan	2009—forward
United Kingdom	2014—forward