Income Taxes (Tables)

12 Months Ended

Oct. 01, 2011

Income Taxes [Abstract]

Schedule of income before income tax, domestic and foreign

The components of income before income taxes for the fiscal years ended October 1, 2011, October 2, 2010, and October 3, 2009 were as follows:

	2011		2010		2009
	(expressed in thousands)
Income before income taxes:
Domestic	$	35,243	$	10,659	$	15,965
Foreign		38,062		16,553		7,938
Total	$	73,305	$	27,212	$	23,903

Provision for income taxes

The provision for income taxes for the fiscal years ended October 1, 2011, October 2, 2010, and October 3, 2009 was as follows:

	2011		2010		2009
	(expressed in thousands)
Current provision (benefit):
Federal	$	5,855	$	357	$	(601	)
State		553		65		5
Foreign		10,627		6,046		7,435
Deferred		5,328		2,168		(330	)
Total provision	$	22,363	$	8,636	$	6,509

Reconciliation from the federal statutory income tax rate to the effective income tax rate

A reconciliation from the federal statutory income tax rate to the Company's effective income tax rate for the fiscal years ended October 1, 2011, October 2, 2010, and October 3, 2009 is as follows:

	2011			2010			2009
United States federal statutory income tax rate		35	%		35	%		35	%
Foreign provision (less than) greater than U.S. tax rate		(2	)		(1	)		1
Settlement of audits, favorable resolution of accrued tax matters		-			(2	)		-
State income taxes, net of federal benefit		1			1			1
Research and development tax credits		(3	)		(1	)		(13	)
Domestic production activities deduction		(1	)		-			(1	)
Foreign tax credits		-			(3	)		-
Valuation allowances against deferred tax assets		-			-			1
Nondeductible stock option expense and other permanent items		1			3			3
Effective income tax rate		31	%		32	%		27	%

Summary of deferred tax assets and liabilities

A summary of the deferred tax assets and liabilities for the fiscal years ended October 1, 2011 and October 2, 2010 is as follows:

	2011			2010
	(expressed in thousands)
Deferred Tax Asset:
Accrued compensation and benefits	$	7,584		$	8,509
Inventory reserves		3,299			3,246
Intangible and other assets		4,851			4,473
Allowance for doubtful accounts		216			175
Net operating loss carryovers		758			2,080
Unrealized derivative instrument losses		495			634
Research and foreign tax credit carryovers		621			2,050
Total deferred tax asset before valuation allowance		17,824			21,167
Less valuation allowance		(643	)		(986	)
Total Deferred Tax Asset	$	17,181		$	20,181

Deferred Tax Liability:
Property and equipment	$	12,221	$	10,026
Foreign deferred revenue and other		2,766		2,757
Total Deferred Tax Liability	$	14,987	$	12,783
Net Deferred Tax Asset	$	2,194	$	7,398

Summary of changes in liability for unrecognized tax benefits

A summary of changes in the Company's liability for unrecognized tax benefits for the fiscal years ended October 1, 2011, October 2, 2010, and October 3, 2009 is as follows:

	2011			2010
	(expressed in thousands)
Beginning balance	$	4,181		$	3,591
Increase due to tax positions related to the current year		1,408			1,274
Decrease due to tax positions related to prior years		(240	)		-
Decrease due to lapse of statute of limitations		(232	)		(657	)
Exchange rate change		(11	)		(27	)
Ending balance	$	5,106		$	4,181