INCOME TAXES (Tables)

12 Months Ended

Sep. 28, 2014

Pretax income (loss) was generated from the following sources for each of the three fiscal years in the period ended September 28, 2014 (amounts in thousands):



	2014			2013			2012
Domestic	$	(62,702	)	$	(38,709	)	$	(88,964	)
Foreign	86,618			94,772			74,239
Total	$	23,916		$	56,063		$	(14,725	)

Provision (Benefit) of Income Taxes

The provision for income taxes consisted of the following components for each of the three fiscal years in the period ended September 28, 2014 (amounts in thousands):



	2014			2013		2012
Current:
Federal	$	—		$	812	$	(16	)
State	264			806		228
Foreign	3,914			3,115		3,458
Deferred:
Federal	(6,534		)	2,306		5,061
State	(155		)	1,385		2,255
Foreign	3,304			3,965		3,964
	$	793		$	12,389	$	14,950

Reconciliation of income Tax Computed at the Federal Statutary Rate

The following is a reconciliation of income tax computed at the federal statutory rate to our actual tax expense for each of the three fiscal years in the period ended September 28, 2014 (amounts in thousands):



	2014			2013			2012
Tax computed at federal statutory rate	$	8,372		$	19,622		$	(5,153	)
State taxes, net of federal impact	(1,064		)	(1,468		)	(3,244		)
Foreign income taxed at different rates	(24,667		)	(20,523		)	(18,207		)
Tax credits and incentives	(2,757		)	(5,418		)	(1,096		)
Stock award compensation	1,157			197			295
Unrecognized tax benefits	1,410			(392		)	1,981
U.S. tax on foreign income	4,061			1,374			18,150
Income tax return to provision	(189		)	(875		)	(3,153		)
Non-deductible permanent items	869			167			1,682
Pre-acquisition loss carry forwards	(11,414		)	—			(4,043		)
Expiration of tax attributes	2,931			—			—
Foreign declared dividend	3,642			—			—
Withholding taxes	300			700			—
Other differences, net	493			164			9
Valuation allowance	17,649			18,841			27,729
	$	793		$	12,389		$	14,950

Components of Deferred Tax Assets (Liabilities)

The tax effected deferred tax assets (liabilities) are comprised of the following components (amounts in thousands):



	September 28, 2014			September 29, 2013
Accounts receivable, net	$	1,173		$	945
Inventories	14,501			9,264
Accrued employee benefit expenses	8,806			4,230
Net operating losses	149,571			140,555
Tax credits and incentives	144,219			140,069
Accrued other expenses	11,397			6,287
Deferred equity compensation	16,725			14,845
Property and equipment, net	3,115			3,242
Other assets	11,753			9,797
Total deferred tax assets	361,260			329,234
Intangible assets	(127,213		)	(100,050		)
Foreign declared dividend	(3,642		)	—
Total deferred tax liabilities	(130,855		)	(100,050		)
Less valuation allowance	(218,946		)	(210,073		)
	$	11,459		$	19,111

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (amounts in thousands):



	September 28, 2014			September 29, 2013			September 30, 2012
Beginning gross unrecognized tax benefits	$	69,571		$	58,016		$	32,370
Additions based on tax positions related to the current year	2,389			3,238			12,786
Additions based on current year acquisitions	28,861			—			10,615
Additions based on tax positions of prior years	459			12,845			2,605
Reductions based on tax positions of prior years	—			(2,805		)	(169		)
Reductions for lapses and settlements	(3,609		)	(1,723		)	(191		)
Ending gross unrecognized tax benefit	$	97,671		$	69,571		$	58,016