Income Taxes (Tables)

12 Months Ended

Sep. 29, 2013

Income Taxes

Schedule of income before income taxes, by geographical area

	Fiscal Year Ended
	September 29, 2013			September 30, 2012		October 2, 2011
	(in thousands)
Income (loss) before income taxes:
United States	$	60,547		$	141,035	$	126,912
Foreign		(48,015	)		19,761		13,580
Total income before income taxes	$	12,532		$	160,796	$	140,492

Schedule of components of income tax expense

	Fiscal Year Ended
	September 29, 2013			September 30, 2012			October 2, 2011
	(in thousands)
Current:
Federal	$	11,155		$	46,058		$	30,246
State		2,705			6,949			5,948
Foreign		11,646			8,569			9,596
Total current income tax expense		25,506			61,576			45,790
Deferred:
Federal		(2,965	)		(200	)		6,755
State		(637	)		(622	)		1,069
Foreign		(7,866	)		(4,690	)		(6,104	)
Total deferred income tax expense (benefit)		(11,468	)		(5,512	)		1,720
Total income tax expense	$	14,038		$	56,064		$	47,510

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

	Fiscal Year Ended
	September 29, 2013					September 30, 2012					October 2, 2011
	($ in thousands)
Tax at federal statutory rate	$	4,386		35.0	%	$	56,278		35.0	%	$	49,172		35.0	%
State taxes, net of federal benefit		1,316		10.5			4,932		3.1			4,376		3.1
R&E credits		(6,622	)	(52.8	)		(360	)	(0.2	)		(1,689	)	(1.2	)
Domestic production deduction		(828	)	(6.6	)		(774	)	(0.5	)		(770	)	(0.6	)
Tax differential on foreign earnings		(4,263	)	(34.0	)		(4,444	)	(2.8	)		(4,140	)	(3.0	)
Corrections of prior-year errors		3,255		26.0			–		–			–		-
Goodwill and contingent consideration		11,288		90.0			(1,552	)	(1.0	)		–		-
Stock compensation		443		3.5			80		0.1			301		0.2
Valuation allowance		4,947		39.5			2,512		1.6			-		-
Other		116		0.9			(608	)	(0.4	)		260		0.3
Total income tax expense	$	14,038		112.0	%	$	56,064		34.9	%	$	47,510		33.8	%

Schedule of temporary differences comprising the net deferred income tax liability

	Fiscal Year Ended
	September 29, 2013			September 30, 2012
	(in thousands)
Deferred Tax Asset:
State taxes	$	452		$	975
Reserves and contingent liabilities		5,883			4,689
Allowance for doubtful accounts		7,345			2,039
Accrued liabilities		14,425			13,298
Stock-based compensation		10,778			10,980
Loss carry-forwards		9,563			2,926
Valuation allowance on loss carry-forwards		(7,459	)		(2,512	)
Total deferred tax asset		40,987			32,395
Deferred Tax Liability:
Unbilled revenue		(47,281	)		(45,417	)
Prepaid expense		(7,522	)		(2,251	)
Intangibles		(24,933	)		(21,695	)
Property and equipment		(9,946	)		(8,109	)
Total deferred tax liability		(89,682	)		(77,472	)
Net deferred tax liability	$	(48,695	)	$	(45,077	)

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

	Fiscal Year Ended
	September 29, 2013			September 30, 2012			October 2, 2011
	(in thousands)
Beginning balance	$	24,092		$	25,940		$	21,806
Additions for current year tax positions		2,661			6,273			8,007
Additions for prior year tax positions		4,951			19			2,554
Reductions for prior year tax positions		(5,818	)		(8,072	)		(6,315	)
Settlements		–			(68	)		(112	)
Ending balance	$	25,886		$	24,092		$	25,940