INCOME TAXES (Tables)

12 Months Ended

Sep. 29, 2013

Pretax income (loss) was generated from the following sources for each of the three fiscal years in the period ended September 29, 2013 (amounts in thousands):



	2013			2012			2011
Domestic	$	(38,709	)	$	(88,964	)	$	(40,359	)
Foreign	94,772			74,239			62,408
Total	$	56,063		$	(14,725	)	$	22,049

Provision (Benefit) of Income Taxes

The provision (benefit) for income taxes consisted of the following components for each of the three fiscal years in the period ended September 29, 2013 (amounts in thousands):



	2013		2012			2011
Current:
Federal	$	812	$	(16	)	$	314
State	806		228			10
Foreign	3,115		3,458			8,324
Deferred:
Federal	2,306		5,061			(25,962		)
State	1,385		2,255			(1,609		)
Foreign	3,965		3,964			(14,758		)
	$	12,389	$	14,950		$	(33,681	)

Reconciliation of income Tax Computed at the Federal Statutary Rate

The following is a reconciliation of income tax computed at the federal statutory rate to our actual tax expense for each of the three fiscal years in the period ended September 29, 2013 (amounts in thousands):



	2013			2012			2011
Tax computed at federal statutory rate	$	19,622		$	(5,153	)	$	7,717
State taxes, net of federal impact	(1,468		)	(3,244		)	(7,023		)
Foreign income taxed at different rates	(21,705		)	(18,207		)	(9,830		)
Tax credits and incentives	(5,418		)	(1,096		)	(4,234		)
Stock award compensation	197			295			347
Unrecognized tax benefits	(392		)	1,981			1,541
Executive compensation	—			—			444
U.S. tax on foreign income	1,374			18,150			—
Income tax return to provision	(875		)	(3,153		)	55
Non-deductible permanent items	167			1,682			2,748
Pre-acquisition loss carryforwards	1,182			(4,043		)	(2,298		)
Withholding taxes	700			—			—
Other differences, net	164			9			(261		)
Valuation allowance	18,841			27,729			(22,887		)
	$	12,389		$	14,950		$	(33,681	)

Components of Deferred Tax Assets (Liabilities)

The tax effected deferred tax assets (liabilities) are comprised of the following components (amounts in thousands):



	September 29, 2013			September 30, 2012
Accounts receivable, net	$	945		$	925
Inventories	9,264			12,109
Accrued employee benefit expenses	4,230			5,230
Net operating losses	140,555			127,603
Tax credits and incentives	140,069			137,628
Accrued other expenses	6,287			7,776
Deferred equity compensation	14,845			14,111
Property and equipment, net	3,242			3,152
Other assets	9,797			17,155
Total deferred tax assets	329,234			325,689
Intangible assets	(100,050		)	(101,250		)
Total deferred tax liabilities	(100,050		)	(101,250		)
Less valuation allowance	(210,073		)	(196,147		)
	$	19,111		$	28,292

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (amounts in thousands):



	September 29, 2013			September 30, 2012			October 2, 2011
Beginning gross unrecognized tax benefits	$	58,016		$	32,370		$	21,719
Additions based on tax positions related to the current year	3,238			12,786			2,665
Additions based on current year acquisitions	—			10,615			8,164
Additions based on tax positions of prior years	12,845			2,605			382
Reductions based on tax positions of prior years	(2,805		)	(169		)	—
Reductions for lapses and settlements	(1,723		)	(191		)	(560		)
Ending gross unrecognized tax benefit	$	69,571		$	58,016		$	32,370