Income Taxes (Tables)

12 Months Ended

Sep. 28, 2025

Summary of income before income taxes, by geographical area

Income before income taxes, by geographic area, was as follows (in thousands):


	Fiscal Year Ended
	September 28, 2025		September 29, 2024		October 1, 2023

Income before income taxes:
United States	$	176,118	$	294,401	$	287,295
Foreign	201,499		169,065		113,683
Total income before income taxes	$	377,617	$	463,466	$	400,978

Summary of components of income tax expense

Income tax expense consisted of the following (in thousands):


	Fiscal Year Ended
	September 28, 2025		September 29, 2024		October 1, 2023

Current:
Federal	$	75,166	$	76,851	$	110,371
State	16,005		20,997		16,025
Foreign	49,794		44,402		28,970
Total current income tax expense	140,965		142,250		155,366

Deferred:
Federal	(21,982)		(18,734)		(18,062)
State	(3,451)		(6,747)		(4,976)
Foreign	14,136		13,254		(4,802)
Total deferred income tax (benefit) expense	(11,297)		(12,227)		(27,840)

Total income tax expense	$	129,668	$	130,023	$	127,526

Summary of reconciliation of income tax rate

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 28, 2025	September 29, 2024	October 1, 2023
Tax at federal statutory rate	21.0%	21.0%	21.0%
State taxes, net of federal benefit	2.6	2.4	2.2
Research and Development ("R&D") credits	(1.8)	(1.2)	(0.5)
Tax differential on foreign earnings	2.8	2.0	1.5
Goodwill impairment	3.2	—	—
Legal settlements	1.8	—	—
Stock compensation	0.2	(0.4)	(0.4)
Valuation allowance	0.4	(0.1)	1.3
Change in uncertain tax positions	0.9	1.3	11.6
Return to provision	(0.8)	(1.0)	1.1
Disallowed officer compensation	1.2	0.9	1.2
Unremitted earnings	0.2	0.4	0.2
Hedging gain	—	—	(5.7)
Deferred tax adjustments	(0.7)	0.8	(2.3)
Audit settlements	—	0.9	—
Receivables/payables adjustments	1.7	—	—
Other	1.6	1.1	0.6
Total income tax expense	34.3%	28.1%	31.8%

Summary of temporary differences comprising the net deferred income tax asset

Temporary differences comprising the net deferred income tax asset shown on the accompanying consolidated balance sheets were as follows (in thousands):


	Fiscal Year Ended
	September 28, 2025		September 29, 2024

Deferred Tax Assets:
State taxes	$	2,973	$	3,916
Reserves and contingent liabilities	7,620		—
Accounts receivable including the allowance for doubtful accounts	6,674		5,315
Accrued liabilities	51,924		64,929
Lease liabilities, operating leases	57,769		51,841
Stock-based compensation	1,772		1,923
Unbilled revenue	13,524		9,273
Loss and other carry-forwards	30,201		48,256
Property and equipment	8		—
Capitalized research and development	54,969		37,417
Capped call transactions	7,841		10,311
Valuation allowance	(17,791)		(16,841)
Total deferred tax assets	217,484		216,340

Deferred Tax Liabilities:
Prepaid expense	(1,775)		(3,065)
Reserves and contingent liabilities	—		(153)
Right-of-use assets, operating leases	(55,736)		(51,841)
Intangibles	(74,883)		(81,623)
Undistributed earnings	(3,647)		(2,708)
Property and equipment	—		(1,583)
Total deferred tax liabilities	(136,041)		(140,973)

Net deferred tax assets	$	81,443	$	75,367



Reported As:
Deferred tax assets excluding held-for-sale	$	106,238	$	105,529
Deferred tax assets held-for-sale	—		—
Deferred tax assets	106,238		105,529

Deferred tax liabilities excluding held-for-sale	(21,333)		(30,162)
Deferred tax liabilities held-for-sale	(3,462)		—
Deferred tax liabilities	(24,795)		(30,162)

Net deferred tax assets	$	81,443	$	75,367

Summary of 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 (in thousands):


	Fiscal Year Ended
	September 28, 2025		September 29, 2024		October 1, 2023

Beginning balance	$	41,440	$	53,619	$	8,908
Acquisition of RPS Group	—		—		6,012
Additions for current fiscal year tax positions	688		1,000		27,272
Additions for prior fiscal year tax positions	—		1,000		14,602
Reductions for prior fiscal year tax positions	(737)		—		(1,358)
Settlements	(532)		(14,179)		(1,817)
Ending balance	$	40,859	$	41,440	$	53,619