Income Taxes (Tables)

12 Months Ended

Oct. 03, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for (benefit from) income taxes on income (loss) from continuing operations before income taxes consists of the following (in thousands):

	Fiscal
	2020		2019		2018
Currently payable:
Federal	$	(1,660)	$	1,995	$	1,163
State	471		557		114
Foreign	1,176		13,448		107,487
	(13)		16,000		108,764
Deferred and other:
Federal	(2,343)		(407)		26,334
State	(1,605)		516		(489)
Foreign	(24,623)		(9,886)		(20,414)
	(28,571)		(9,777)		5,431
Provision for (benefit from) income taxes	$	(28,584)	$	6,223	$	114,195

Schedule of Income before Income Tax, Domestic and Foreign

The components of income from continuing operations before income taxes consist of (in thousands):

	Fiscal
	2020		2019		2018
United States	$	(98,900)	$	54,480	$	65,272
Foreign	(343,823)		5,568		296,283
Income (loss) from continuing operations before income taxes	$	(442,723)	$	60,048	$	361,555

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the income tax expense (benefit) at the U.S. Federal statutory rate (21.0% in fiscal 2020, 21.0% in fiscal 2019, and 24.5% in fiscal 2018) to actual income tax expense is as follows (in thousands):

	Fiscal
	2020			2019			2018
Federal statutory tax expense (benefit)	$	(92,972)		$	12,610		$	88,684
Valuation allowance	15,231			7,925			4,263
Taxes on foreign earnings at rates greater (less) than U.S. rates, net	(27,041)			(8,210)			8,417
Stock-based compensation	3,640			556			(8,536)
State income taxes, net of federal income tax benefit	(1,249)			1,131			(373)
Research and development credit	(4,350)			(3,665)			(6,972)
Deferred compensation	(564)			(206)			(560)
Release of unrecognized tax benefits	(20,027)			(6,688)			(352)
Release of interest accrued for unrecognized tax benefits	(4,232)			(205)			(156)
Reversal of competent authority	8,552			—			—
U.S. tax reform impact	—			—			26,653
Deferred taxes on foreign earnings	1,303			1,215			—
Write-off of withholding tax credits	—			1,134			—
Goodwill impairment	89,962			—			—
Other, net	3,163			626			3,127
Provision for (benefit from) income taxes	$	(28,584)		$	6,223		$	114,195
Effective tax rate	6.5		%	10.4		%	31.6		%

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were (in thousands):

	Fiscal year-end
	2020		2019
Deferred tax assets:
Reserves and accruals not currently deductible	$	28,520	$	24,069
Operating loss carryforwards and tax credits	83,447		71,890
Deferred revenue	4,412		986
Depreciation and amortization	14,362		—
Stock-based compensation	4,906		5,649
Competent authority offset to transfer pricing tax reserves	4,283		10,585
Accumulated translation adjustment	2,508		5,459
Retirement and pension	17,982		16,618
Lease liabilities	21,737		—
Other	165		4,423
Total gross deferred tax assets	182,322		139,679
Valuation allowance	(57,707)		(41,491)
Total net deferred tax assets	124,615		98,188
Deferred tax liabilities:
Depreciation and amortization	—		23,625
Deferred tax liabilities on foreign earnings	16,055		14,603
Inventory capitalization	1,394		734
Right of use assets	20,859		—
Total gross deferred tax liabilities	38,308		38,962
Net deferred tax assets	$	86,307	$	59,226

Schedule of Deferred Tax Assets

The net deferred tax asset is classified on the consolidated balance sheets as follows (in thousands):

	Fiscal year-end
	2020		2019
Non-current deferred income tax assets	$	102,028	$	87,011
Non-current deferred income tax liabilities	(15,721)		(27,785)
Net deferred tax assets	$	86,307	$	59,226

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the change in gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

	Fiscal year-end
	2020		2019		2018
Balance as of the beginning of the year	$	58,111	$	65,882	$	47,566
Tax positions related to current year:
Additions	1,410		605		19,033
Tax positions related to prior year:
Additions	86		448		117
Reductions	(17)		(6,071)		—
Lapses in statutes of limitations	(1,211)		(639)		(700)
Decrease in unrecognized tax benefits based on settlement	(19,463)		—		—
Foreign currency revaluation adjustment	591		(2,114)		(134)
Balance as of end of year	$	39,507	$	58,111	$	65,882

Summary of Income Tax Examinations

A summary of the fiscal tax years that remain subject to examination, as of October 3, 2020, for our major tax jurisdictions is:

United States—Federal	2017—forward
United States—Various States	2016—forward
Netherlands	2014—forward
Germany	2011—forward
Japan	2014—forward
South Korea	2015—forward
United Kingdom	2018—forward