Income Taxes (Tables)

12 Months Ended

Oct. 03, 2020

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes

The components of income (loss) before income taxes are as follows:

	2020		2019		2018
Domestic	$	(198,607)	$	17,474	$	6,139
Foreign	(85,099)		31,139		38,084
Total income (loss) before income taxes	$	(283,706)	$	48,613	$	44,223

Provision for Income Taxes

The income tax provision (benefit) is as follows:

	2020		2019		2018
Current
Federal	$	391	$	2,392	$	1,613
State	593		1,171		565
Foreign	3,689		11,638		10,331
Deferred	(16,328)		(9,655)		(29,614)
Income tax provision (benefit)	$	(11,655)	$	5,546	$	(17,105)

Reconciliation from Federal Statutory Income Tax Rate to Effective Income Tax Rate

A reconciliation from the U.S. federal statutory income tax rate to our effective income tax rate is as follows:

	2020 1		2019		2018
U.S. federal statutory income tax rate	21	%	21	%	25	%
Impact from foreign operations	(1)		10		3
State income taxes, net of federal benefit	—		1		—
Research and development tax credits	1		(15)		(10)
Domestic production activities deduction / foreign derived intangible income	1		(5)		(2)
Impact of U.S. Tax Act	—		(2)		(57)
Nondeductible stock option expense and other permanent items	—		1		2
Impairment	(18)		—		—
Effective income tax rate	4	%	11	%	(39)	%

1    The fiscal year 2020 effective income tax rate was 4.1%, which includes the impact of the impairment of assets recorded in the fourth quarter of fiscal year 2020 that are non-deductible for tax purposes. Excluding the impact of the impairment of assets, the fiscal year 2020 effective income tax rate would have been a benefit of 14.3%.

Summary of Deferred Tax Assets and Liabilities

A summary of the deferred tax assets and liabilities are as follows:

	2020		2019
Deferred tax assets
Accrued compensation and benefits	$	14,482	$	15,014
Inventory reserves	5,229		4,510
163(j) interest disallowance	3,991		4,253
Other assets	5,893		4,565
Allowance for doubtful accounts	1,152		1,408
Net operating loss carryovers	1,533		2,103
State and foreign tax credit carryovers	870		1,224
Research and development tax credit carryovers	11,612		3,774
Unrealized derivative instrument gains	1,062		311
Total deferred tax asset before valuation allowance	45,824		37,162
Less valuation allowance	(5,933)		(5,279)
Total deferred tax assets	39,891		31,883
Deferred tax liabilities
Property and equipment	15,016		13,158
Foreign deferred revenue and other	10,330		5,779
Intangible assets	42,986		47,248
Total deferred tax liabilities	68,332		66,185
Net deferred tax assets (liabilities)	$	(28,441)	$	(34,302)

Summary of Changes in Liability for Unrecognized Tax Benefits

A summary of changes to our liability for unrecognized tax benefits is as follows:

	2020		2019
Beginning liability for unrecognized tax benefits	$	4,414	$	6,158
Increase due to tax positions related to the current year	577		663
Increase (decrease) due to tax positions related to prior years	775		960
Decrease due to settlements with tax authorities	(947)		(2,635)
Decrease due to lapse of statute of limitations	—		(732)
Ending liability for unrecognized tax benefits	$	4,819	$	4,414