Income Taxes (Tables)

12 Months Ended

Sep. 29, 2017

Components Of Income Before Provision For Income Taxes

The following two tables present the components of our income before provision for income taxes by geographic region and the portion of our provision for income taxes classified as current and deferred (in thousands):



	Fiscal Year Ended
	September 29, 2017		September 30, 2016		September 25, 2015
United States	$	28,221	$	37,223	$	17,091
Foreign	228,423		198,681		228,691
Total	$	256,644	$	235,904	$	245,782

Schedule Of Provision For Income Taxes



	Fiscal Year Ended
	September 29, 2017			September 30, 2016			September 25, 2015
Current:
Federal	$	30,719		$	19,226		$	24,262
State	610			521			130
Foreign	55,531			52,492			52,461
Total current	86,860			72,239			76,853

Deferred:
Federal	(27,345		)	(19,540		)	(9,593		)
State	(4,596		)	(3,451		)	(3,686		)
Foreign	(702		)	254			(1,032		)
Total deferred	(32,643		)	(22,737		)	(14,311		)
Provision for income taxes	$	54,217		$	49,502		$	62,542

Schedule of Withholding Taxes

The foreign current tax provision includes this withholding tax expense while the appropriate foreign tax credit benefit is included in current federal and foreign tax provision. Withholding taxes were as follows (in thousands):



	Fiscal Year Ended
	September 29, 2017		September 30, 2016		September 25, 2015
Withholding taxes	$	48,012	$	45,151	$	45,372

Summary Of Tax Effects Of The Temporary Differences Between Carrying Amounts And Amounts Used For Tax

A summary of the tax effects of the temporary differences were as follows (in thousands):



	Fiscal Year Ended
	September 29, 2017			September 30, 2016
Deferred income tax assets:
Investments	$	2,327		$	972
Inventories	6,821			7,855
Net operating loss	2,806			2,818
Accrued expenses	19,732			16,497
Stock-based compensation	26,970			31,397
Revenue recognition	53,843			54,043
Depreciation and amortization	52,876			26,364
Research and development credits	15,504			12,837
Foreign tax credits	10,140			9,727
Translation adjustment	625			1,223
Other	6,696			9,473
Total gross deferred income tax assets	198,340			173,206
Less: valuation allowance	—			—
Total deferred income tax assets	198,340			173,206

Deferred income tax liabilities:
Intangibles	(2,277		)	(2,014		)
International earnings	(4,855		)	(4,097		)
Unrealized gain on investments	(293		)	(305		)
Deferred income tax assets, net (non-current)	$	190,915		$	166,790

Reconciliation Of Federal Statutory Tax Rate To Our Effective Tax Rate

A reconciliation of the federal statutory tax rate to our effective tax rate on income from continuing operations was as follows:



	Fiscal Year Ended
	September 29, 2017		September 30, 2016		September 25, 2015
Federal statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal effect	0.7		0.7		0.7
Stock-based compensation expense rate	1.4		1.5		1.7
Research and development tax credits	(3.7	)	(5.2	)	(3.0	)
Tax exempt interest	(0.1	)	(0.1	)	(0.2	)
U.S. manufacturing tax incentives	(0.8	)	(1.1	)	(0.3	)
Foreign rate differential	(11.7	)	(9.5	)	(9.1	)
Audit settlements	(0.6	)	(2.3	)	—
Other	0.9		2.0		0.6
Effective tax rate	21.1	%	21.0	%	25.4	%

Aggregate Changes In Balance Of Gross Unrecognized Tax Benefits, Excluding Interest And Penalties

Aggregate changes in the balance of gross unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands):



	Fiscal Year Ended
	September 29, 2017			September 30, 2016			September 25, 2015
Beginning Balance	$	75,168		$	65,161		$	31,351
Gross increases - tax positions taken during prior years	308			4,343			507
Gross decreases - tax positions taken during prior years	—			—			—
Gross increases - tax positions taken during current year	26,724			26,585			34,293
Gross decreases - settlements with tax authorities during current year	(1,101		)	(20,086		)	—
Lapse of statute of limitations	(2,434		)	(835		)	(990		)
Ending Balance	$	98,665		$	75,168		$	65,161

Schedule of Accrued Interest and Penalties on Unrecognized Tax Benefits

Our accrued interest and penalties on unrecognized tax benefits as of September 29, 2017 and September 30, 2016 were as follows (in thousands):



	Fiscal Year Ended
	September 29, 2017		September 30, 2016
Accrued interest	$	3,733	$	1,936
Accrued penalties	55		53
Total	$	3,788	$	1,989