Income Taxes (Tables)

12 Months Ended

Sep. 29, 2019

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
	September 29, 2019			September 30, 2018			October 1, 2017
	(in thousands)
Income before income taxes:
United States	$	185,535		$	180,034		$	166,074
Foreign	(10,399		)	(5,472		)	5,687
Total income before income taxes	$	175,136		$	174,562		$	171,761

Schedule of components of income tax expense

Income tax expense consisted of the following:

	Fiscal Year Ended
	September 29, 2019			September 30, 2018			October 1, 2017
				(in thousands)
Current:
Federal	$	30,051		$	46,840		$	45,604
State	8,923			9,228			8,860
Foreign	15,016			10,897			9,337
Total current income tax expense	53,990			66,965			63,801
Deferred:
Federal	(9,108		)	(22,072		)	(4,251		)
State	(1,195		)	(1,471		)	(945		)
Foreign	(27,312		)	(5,817		)	(4,761		)
Total deferred income tax expense	(37,615		)	(29,360		)	(9,957		)
Total income tax expense	$	16,375		$	37,605		$	53,844

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
	September 29, 2019	September 30, 2018	October 1, 2017
Tax at federal statutory rate	21.0%	24.5%	35.0%
State taxes, net of federal benefit	3.4	4.2	3.4
Research and Development ("R&D") credits	(4.7)	(1.4)	(1.8)
Domestic production deduction	—	(0.2)	(0.7)
Tax differential on foreign earnings	1.0	0.5	—
Non-taxable foreign interest income	(1.7)	(2.0)	(2.9)
Goodwill	0.9	1.7	—
Stock compensation	(2.4)	(2.7)	(2.8)
Valuation allowance	(13.5)	(0.5)	(0.5)
Change in uncertain tax positions	2.4	1.9	1.8
Revaluation of deferred taxes	(1.4)	(8.4)	—
Deferred tax adjustments	(0.4)	2.1	—
Transition tax on foreign earnings	1.4	—	—
Other	3.3	1.8	(0.2)
Total income tax expense	9.3%	21.5%	31.3%

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
	September 29, 2019			September 30, 2018
	(in thousands)
Deferred Tax Assets:
State taxes	$	764		$	1,220
Reserves and contingent liabilities	5,500			2,646
Allowance for doubtful accounts	7,506			4,259
Accrued liabilities	28,232			19,611
Stock-based compensation	6,700			6,338
Loss carry-forwards	39,782			23,492
Valuation allowance	(20,543		)	(21,479		)
Total deferred tax assets	67,941			36,087
Deferred Tax Liabilities:
Unbilled revenue	(21,886		)	(25,819		)
Prepaid expense	(3,026		)	(3,524		)
Intangibles	(26,482		)	(23,319		)
Property and equipment	(1,133		)	(4,984		)
Total deferred tax liability	(52,527		)	(57,646		)
Net deferred tax assets (liabilities)	$	15,414		$	(21,559	)

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
	September 29, 2019			September 30, 2018			October 1, 2017
	(in thousands)
Beginning balance	$	8,328		$	9,337		$	22,786
Additions for current year tax positions	1,342			1,928			1,060
Additions for prior year tax positions	356			1,116			2,365
Reductions for prior year tax positions	(100		)	—			(6,875		)
Settlements	(757		)	(4,053		)	(9,999		)
Ending balance	$	9,169		$	8,328		$	9,337