INCOME TAXES (Tables)

12 Months Ended

Oct. 02, 2011

Pretax Income (Loss)

Pretax income (loss) was generated from the following sources (amounts in thousands):

	For each of the three fiscal years in the period ended on or about October 2, 2011
	2011			2010			2009
Domestic	$	(40,359	)	$	(19,878	)	$	(61,840	)
Foreign		62,408			74,909			52,966
Total	$	22,049		$	55,031		$	(8,874	)

Provision (Benefit) of Income Taxes

The provision (benefit) for income taxes consisted of the following components (amounts in thousands):

	For each of the three fiscal years in the period ended on or about October 2, 2011
	2011			2010			2009
Current:
Federal	$	314		$	(17,830	)	$	(10,791	)
State		10			533			1,227
Foreign		8,324			7,345			6,733
Deferred
Federal		(24,679	)		5,352			13,708
State		(1,609	)		373			7,293
Foreign		(14,758	)		220			(221	)
	$	(32,398	)	$	(4,007	)	$	17,949

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 (amounts in thousands):

	For each of the three fiscal years in the period ended October 2, 2011
	2011			2010			2009
Tax computed at federal statutory rate	$	7,717		$	19,261		$	(3,107	)
State taxes, net of federal impact		(7,023	)		2,147			(2,495	)
Foreign income taxed at different rates		(9,830	)		(14,621	)		(22,969	)
Tax credits		(4,234	)		(3,025	)		(1,899	)
Stock award compensation		347			3,288			3,225
Unrecognized tax benefits		1,541			2,325			3,298
Imputed interest		47			61			335
Executive compensation		444			1,312			1,558
Non-deductible permanent items		2,803			727			—
Pre-acquisition loss carryforwards		(2,298	)		—			—
Other differences, net		(308	)		134			614
Valuation allowance		(21,604	)		(15,616	)		39,389
	$	(32,398	)	$	(4,007	)	$	17,949

Components of Deferred Tax Assets (Liabilities)

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

	October 2, 2011			October 3, 2010
Accounts receivable, net	$	1,159		$	1,161
Inventories		22,041			10,313
Accrued employee benefit expenses		6,209			2,603
Net operating losses		32,095			16,840
Tax credits		32,334			12,319
Accrued other expenses		9,296			4,343
Deferred equity compensation		12,075			8,683
Property and equipment, net		(465	)		1,403
Other assets		7,822			3,826
Total deferred tax assets		122,566			61,491
Intangible assets		(96,624	)		(30,781	)
Total deferred tax liabilities		(96,624	)		(30,781	)
Less valuation allowance		(18,086	)		(37,604	)
	$	7,856		$	(6,893	)

Unrecognized Tax Benefits

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

	October 2, 2011			October 3, 2010			September 27, 2009
Beginning gross unrecognized tax benefits	$	21,719		$	16,431		$	12,819
Additions based on tax positions related to the current year		2,665			4,757			2,411
Additions based on current year acquisitions		8,164			349			—
Additions based on tax positions of prior years		382			2,408			2,236
Reductions for lapses and settlements		(560	)		(2,226	)		(1,035	)
Ending gross unrecognized tax benefit	$	32,370		$	21,719		$	16,431