Income Taxes (Tables)

12 Months Ended

Oct. 01, 2017

Income Tax Disclosure [Abstract]

Schedule of income before income taxes, by geographical area

The income before income taxes, by geographic area, was as follows:

	Fiscal Year Ended
	October 1, 2017		October 2, 2016		September 27, 2015
	(in thousands)
Income before income taxes:
United States	$	166,074	$	113,576	$	118,822
Foreign	5,687		10,890		(38,501		)
Total income before income taxes	$	171,761	$	124,466	$	80,321

Schedule of components of income tax expense

Income tax expense consisted of the following:

	Fiscal Year Ended
	October 1, 2017			October 2, 2016			September 27, 2015
				(in thousands)
Current:
Federal	$	45,604		$	22,277		$	23,836
State	8,860			5,634			5,072
Foreign	9,337			6,651			3,773
Total current income tax expense	63,801			34,562			32,681
Deferred:
Federal	(4,251		)	6,231			7,218
State	(945		)	(16		)	2,335
Foreign	(4,761		)	(164		)	(1,141		)
Total deferred income tax expense	(9,957		)	6,051			8,412
Total income tax expense	$	53,844		$	40,613		$	41,093

Schedule of reconciliation of income tax expense and effective income tax rates

Total income tax expense was different from the amount computed by applying the U.S. federal statutory rate to pre-tax income as follows:

	Fiscal Year Ended
	October 1, 2017	October 2, 2016	September 27, 2015
Tax at federal statutory rate	35.0%	35.0%	35.0%
State taxes, net of federal benefit	3.4	3.1	5.0
Research and Development ("R&D") credit	(1.8)	(3.4)	(3.8)
Domestic production deduction	(0.7)	(0.7)	(0.8)
Tax differential on foreign earnings	—	(1.6)	(3.8)
Non-taxable foreign interest income	(2.9)	(3.9)	(5.9)
Non-deductible executive compensation	—	2.0	—
Goodwill and contingent consideration	—	—	19.2
Stock compensation	(2.8)	0.3	0.5
Valuation allowance	(0.5)	2.4	5.7
Change in uncertain tax positions	1.8	(2.0)	—
Other	(0.2)	1.4	0.1
Total income tax expense	31.3%	32.6%	51.2%

Schedule of temporary differences comprising the net deferred income tax liability

Temporary differences comprising the net deferred income tax liability shown on the accompanying consolidated balance sheets were as follows:

	Fiscal Year Ended
	October 1, 2017			October 2, 2016
	(in thousands)
Deferred Tax Assets:
State taxes	$	598		$	697
Reserves and contingent liabilities	2,941			2,539
Allowance for doubtful accounts	4,273			3,817
Accrued liabilities	22,466			24,663
Stock-based compensation	10,069			10,684
Intangibles	—			—
Loss carry-forwards	28,261			23,514
Valuation allowance	(25,326		)	(25,447		)
Total deferred tax assets	43,282			40,467
Deferred Tax Liabilities:
Unbilled revenue	(46,408		)	(54,638		)
Prepaid expense	(6,253		)	(2,921		)
Intangibles	(24,328		)	(33,268		)
Property and equipment	(8,311		)	(9,358		)
Total deferred tax liability	(85,300		)	(100,185		)
Net deferred tax liabilities	$	(42,018	)	$	(59,718	)

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Fiscal Year Ended
	October 1, 2017			October 2, 2016			September 27, 2015
	(in thousands)
Beginning balance	$	22,786		$	21,618		$	21,717
Additions for current year tax positions	1,060			2,802			1,147
Additions for prior year tax positions	2,365			1,466			2,309
Reductions for prior year tax positions	(6,875		)	(3,100		)	(23		)
Settlements	(9,999		)	—			(3,532		)
Ending balance	$	9,337		$	22,786		$	21,618