Income Taxes (Tables)
|
12 Months Ended |
Sep. 30, 2012
|
Income Taxes |
|
Schedule of income before income taxes, by geographical area |
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|
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|
Fiscal Year Ended |
|
|
|
September 30,
2012 |
|
October 2,
2011 |
|
October 3,
2010 |
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
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|
Income before income taxes: |
|
|
|
|
|
|
|
|
|
|
United States |
|
$ |
141,035 |
|
$ |
126,912 |
|
$ |
119,729 |
|
Foreign |
|
|
19,761 |
|
|
13,580 |
|
|
3,358 |
|
|
|
|
|
|
|
|
|
Total income before income taxes |
|
$ |
160,796 |
|
$ |
140,492 |
|
$ |
123,087 |
|
|
|
|
|
|
|
|
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| |
|
Schedule of components of income tax expense |
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Fiscal Year Ended |
|
|
|
September 30,
2012 |
|
October 2,
2011 |
|
October 3,
2010 |
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
Current: |
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
46,058 |
|
$ |
30,246 |
|
$ |
28,538 |
|
State |
|
|
6,949 |
|
|
5,948 |
|
|
5,489 |
|
Foreign |
|
|
8,569 |
|
|
9,596 |
|
|
600 |
|
|
|
|
|
|
|
|
|
Total current income tax expense |
|
|
61,576 |
|
|
45,790 |
|
|
34,627 |
|
|
|
|
|
|
|
|
|
Deferred: |
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
(200 |
) |
|
6,755 |
|
|
9,978 |
|
State |
|
|
(622 |
) |
|
1,069 |
|
|
1,951 |
|
Foreign |
|
|
(4,690 |
) |
|
(6,104 |
) |
|
(288 |
) |
|
|
|
|
|
|
|
|
Total deferred income tax expense (benefit) |
|
|
(5,512 |
) |
|
1,720 |
|
|
11,641 |
|
|
|
|
|
|
|
|
|
Total income tax expense |
|
$ |
56,064 |
|
$ |
47,510 |
|
$ |
46,268 |
|
|
|
|
|
|
|
|
|
| |
|
Schedule of difference in total income tax expense from the amount computed by applying the U.S. federal statutory rate to pre-tax income |
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|
Fiscal Year Ended |
|
|
|
September 30,
2012 |
|
October 2,
2011 |
|
October 3,
2010 |
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Tax at federal statutory rate |
|
$ |
56,278 |
|
|
35.0 |
% |
$ |
49,172 |
|
|
35.0 |
% |
$ |
43,080 |
|
|
35.0 |
% |
State taxes, net of federal benefit |
|
|
4,932 |
|
|
3.1 |
|
|
4,376 |
|
|
3.1 |
|
|
4,787 |
|
|
3.9 |
|
R&E credits |
|
|
(360 |
) |
|
(0.2 |
) |
|
(1,689 |
) |
|
(1.2 |
) |
|
(400 |
) |
|
(0.3 |
) |
Domestic production deduction |
|
|
(774 |
) |
|
(0.5 |
) |
|
(770 |
) |
|
(0.6 |
) |
|
(714 |
) |
|
(0.6 |
) |
Tax differential on foreign earnings |
|
|
(4,444 |
) |
|
(2.8 |
) |
|
(4,140 |
) |
|
(3.0 |
) |
|
(863 |
) |
|
(0.7 |
) |
Contingent consideration adjustments |
|
|
(1,552 |
) |
|
(1.0 |
) |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
Valuation allowance |
|
|
2,512 |
|
|
1.6 |
|
|
– |
|
|
– |
|
|
786 |
|
|
0.6 |
|
Other |
|
|
(528 |
) |
|
(0.3 |
) |
|
561 |
|
|
0.5 |
|
|
(408 |
) |
|
(0.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax expense |
|
$ |
56,064 |
|
|
34.9 |
% |
$ |
47,510 |
|
|
33.8 |
% |
$ |
46,268 |
|
|
37.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
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| |
|
Schedule of temporary differences comprising the net deferred income tax liability |
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|
Fiscal Year Ended |
|
|
|
September 30,
2012 |
|
October 2,
2011 |
|
|
|
(in thousands)
|
|
|
|
|
|
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|
Deferred Tax Asset: |
|
|
|
|
|
|
|
State taxes |
|
$ |
975 |
|
$ |
765 |
|
Reserves and contingent liabilities |
|
|
4,689 |
|
|
5,271 |
|
Allowance for doubtful accounts |
|
|
2,039 |
|
|
5,876 |
|
Accrued liabilities |
|
|
13,298 |
|
|
16,974 |
|
Stock-based compensation |
|
|
10,980 |
|
|
10,057 |
|
Loss carry-forwards |
|
|
2,926 |
|
|
388 |
|
Valuation allowance on loss carry-forwards |
|
|
(2,512 |
) |
|
– |
|
|
|
|
|
|
|
Total deferred tax asset |
|
|
32,395 |
|
|
39,331 |
|
|
|
|
|
|
|
Deferred Tax Liability: |
|
|
|
|
|
|
|
Unbilled revenue |
|
|
(45,417 |
) |
|
(47,858 |
) |
Prepaid expense |
|
|
(2,251 |
) |
|
(3,950 |
) |
Intangibles |
|
|
(21,695 |
) |
|
(26,128 |
) |
Cash-to-accrual adjustments |
|
|
– |
|
|
(262 |
) |
Property and equipment |
|
|
(8,109 |
) |
|
(9,397 |
) |
|
|
|
|
|
|
Total deferred tax liability |
|
|
(77,472 |
) |
|
(87,595 |
) |
|
|
|
|
|
|
Net deferred tax liability |
|
$ |
(45,077 |
) |
$ |
(48,264 |
) |
|
|
|
|
|
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| |
|
Reconciliation of the beginning and ending amounts of unrecognized tax benefits |
|
|
|
|
|
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|
Fiscal Year Ended |
|
|
|
September 30,
2012 |
|
October 2,
2011 |
|
October 3,
2010 |
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
Beginning balance |
|
$ |
25,940 |
|
$ |
21,806 |
|
$ |
20,530 |
|
Additions for current year tax positions |
|
|
6,273 |
|
|
8,007 |
|
|
6,895 |
|
Additions for prior year tax positions |
|
|
19 |
|
|
2,554 |
|
|
2,720 |
|
Reductions for prior year tax positions |
|
|
(8,072 |
) |
|
(6,315 |
) |
|
(5,093 |
) |
Settlements |
|
|
(68 |
) |
|
(112 |
) |
|
(3,246 |
) |
|
|
|
|
|
|
|
|
Ending balance |
|
$ |
24,092 |
|
$ |
25,940 |
|
$ |
21,806 |
|
|
|
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