Income Taxes (Tables)

12 Months Ended

Oct. 02, 2011

Income Taxes

Schedule of income before income taxes, by geographical area

			Fiscal Year Ended
			October 2, 2011		October 3, 2010		September 27, 2009
			(in thousands)
Income before income taxes:
	United States		$	126,912	$	119,729	$	119,174
	Foreign			13,580		3,358		31
		Total income before income taxes	$	140,492	$	123,087	$	119,205

Schedule of components of income tax expense

			Fiscal Year Ended
			October 2, 2011			October 3, 2010			September 27, 2009
			(in thousands)
Current:
	Federal		$	30,246		$	28,538		$	26,152
	State			5,948			5,489			10,423
	Foreign			9,596			600			(626	)
		Total current income tax expense		45,790			34,627			35,949
Deferred:
	Federal			6,755			9,978			(4,360	)
	State			1,069			1,951			(969	)
	Foreign			(6,104	)		(288	)		1,557
		Total deferred income tax expense (benefit)		1,720			11,641			(3,772	)
	Total income tax expense		$	47,510		$	46,268		$	32,177

Schedule of difference in total income tax expense from the amount computed by applying the U.S. federal statutory rate to pre-tax income

	Fiscal Year Ended
	October 2, 2011					October 3, 2010					September 27, 2009
	($ in thousands)
Tax at federal statutory rate	$	49,172		35.0	%	$	43,080		35.0	%	$	41,722		35.0	%
State taxes, net of federal benefit		4,376		3.1			4,787		3.9			5,685		4.8
Examination settlements		–		–			61		–			(3,312	)	(2.8	)
R&E credits		(1,689	)	(1.2	)		(400	)	(0.3	)		(11,700	)	(9.8	)
Tax differential on foreign earnings		(4,140	)	(3.0	)		(863	)	(0.7	)		(80	)	(0.1	)
Other		(209	)	(0.1	)		(397	)	(0.3	)		(138	)	(0.1	)
Total income tax expense	$	47,510		33.8	%	$	46,268		37.6	%	$	32,177		27.0	%

Schedule of temporary differences comprising the net deferred income tax liability

			Fiscal Year Ended
			October 2, 2011			October 3, 2010
			(in thousands)
Deferred Tax Asset:
	State taxes		$	765		$	977
	Reserves and contingent liabilities			5,271			6,984
	Allowance for doubtful accounts			5,876			8,085
	Accrued liabilities			16,974			16,217
	Stock-based compensation			10,057			7,903
	Loss carry-forward			388			5,569
	Valuation allowance on capital loss carry-forward			–			(5,526	)
		Total deferred tax asset		39,331			40,209
Deferred Tax Liability:
	Unbilled revenue			(47,858	)		(43,250	)
	Prepaid expense			(3,950	)		(2,020	)
	Intangibles			(26,128	)		(16,327	)
	Cash-to-accrual adjustments			(262	)		(717	)
	Property and equipment			(9,397	)		(12,252	)
		Total deferred tax liability		(87,595	)		(74,566	)
		Net deferred tax liability	$	(48,264	)	$	(34,357	)

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

	Fiscal Year Ended
	October 2, 2011			October 3, 2010			September 27, 2009
	(in thousands)
Beginning balance	$	21,806		$	20,530		$	38,912
Additions for current year tax positions		8,007			6,895			7,306
Additions for prior year tax positions		2,554			2,720			9,208
Reductions for prior year tax positions		(6,315	)		(5,093	)		(24,955	)
Settlements		(112	)		(3,246	)		(9,941	)
Ending balance	$	25,940		$	21,806		$	20,530