Income Taxes (Tables)

12 Months Ended

Sep. 28, 2014

Income Taxes

Schedule of income before income taxes, by geographical area

	Fiscal Year Ended
	September 28, 2014		September 29, 2013			September 30, 2012
	(in thousands)
Income (loss) before income taxes:
United States	$	118,900	$	60,547		$	141,035
Foreign		25,443		(48,015	)		19,761
Total income before income taxes	$	144,343	$	12,532		$	160,796

Schedule of components of income tax expense

	Fiscal Year Ended
	September 28, 2014			September 29, 2013			September 30, 2012
				(in thousands)
Current:
Federal	$	26,503		$	11,155		$	46,058
State		7,551			2,705			6,949
Foreign		1,759			11,646			8,569
Total current income tax expense		35,813			25,506			61,576
Deferred:
Federal		5,957			(2,965	)		(200	)
State		434			(637	)		(622	)
Foreign		(6,536	)		(7,866	)		(4,690	)
Total deferred income tax expense (benefit)		(145	)		(11,468	)		(5,512	)
Total income tax expense	$	35,668		$	14,038		$	56,064

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

	Fiscal Year Ended
	September 28, 2014					September 29, 2013					September 30, 2012
	($ in thousands)
Tax at federal statutory rate	$	50,521		35.0	%	$	4,386		35.0	%	$	56,278		35.0	%
State taxes, net of federal benefit		4,956		3.4			1,316		10.5			4,932		3.1
R&E credits		(867	)	(0.6	)		(6,622	)	(52.8	)		(360	)	(0.2	)
Domestic production deduction		(1,048	)	(0.7	)		(828	)	(6.6	)		(774	)	(0.5	)
Tax differential on foreign earnings		(7,956	)	(5.5	)		(4,263	)	(34.0	)		(4,444	)	(2.8	)
Corrections of prior-year errors		–		–			3,255		26.0			–		–
Goodwill and contingent consideration		(11,808	)	(8.2	)		11,288		90.0			(1,552	)	(1.0	)
Stock compensation		298		0.2			443		3.5			80		0.1
Valuation allowance		396		0.3			4,947		39.5			2,512		1.6
Other		1,176		0.8			116		0.9			(608	)	(0.4	)
Total income tax expense	$	35,668		24.7	%	$	14,038		112.0	%	$	56,064		34.9	%

Schedule of temporary differences comprising the net deferred income tax liability

	Fiscal Year Ended
	September 28, 2014			September 29, 2013
	(in thousands)
Deferred Tax Asset:
State taxes	$	2,635		$	452
Reserves and contingent liabilities		8,860			5,883
Allowance for doubtful accounts		6,084			7,345
Accrued liabilities		12,212			14,425
Stock-based compensation		10,273			10,778
Loss carry-forwards		10,815			9,563
Valuation allowance on loss carry-forwards		(7,576	)		(7,459	)
Total deferred tax asset		43,303			40,987
Deferred Tax Liability:
Unbilled revenue		(49,150	)		(47,281	)
Prepaid expense		(5,834	)		(7,522	)
Intangibles		(29,257	)		(24,933	)
Property and equipment		(8,235	)		(9,946	)
Total deferred tax liability		(92,476	)		(89,682	)
Net deferred tax liability	$	(49,173	)	$	(48,695	)

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

	Fiscal Year Ended
	September 28, 2014			September 29, 2013			September 30, 2012
	(in thousands)
Beginning balance	$	25,886		$	24,092		$	25,940
Additions for current year tax positions		1,243			2,661			6,273
Additions for prior year tax positions		1,416			4,951			19
Reductions for prior year tax positions		–			(5,818	)		(8,072	)
Settlements		(6,828	)		–			(68	)
Ending balance	$	21,717		$	25,886		$	24,092