Income Taxes (Tables)

12 Months Ended

Sep. 27, 2015

Income Taxes

Schedule of income before income taxes, by geographical area

	Fiscal Year Ended
	September 27, 2015			September 28, 2014		September 29, 2013
	(in thousands)
Income (loss) before income taxes:
United States	$	118,822		$	118,900	$	60,547
Foreign		(38,501	)		25,443		(48,015	)
Total income before income taxes	$	80,321		$	144,343	$	12,532

Schedule of components of income tax expense

	Fiscal Year Ended
	September 27, 2015			September 28, 2014			September 29, 2013
				(in thousands)
Current:
Federal	$	23,836		$	26,503		$	11,155
State		5,072			7,551			2,705
Foreign		3,773			1,759			11,646
Total current income tax expense		32,681			35,813			25,506
Deferred:
Federal		7,218			5,957			(2,965	)
State		2,335			434			(637	)
Foreign		(1,141	)		(6,536	)		(7,866	)
Total deferred income tax expense (benefit)		8,412			(145	)		(11,468	)
Total income tax expense	$	41,093		$	35,668		$	14,038

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

	Fiscal Year Ended
	September 27, 2015			September 28, 2014			September 29, 2013
Tax at federal statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		5.0			3.4			10.5
R&E credits		(3.8	)		(0.6	)		(52.8	)
Domestic production deduction		(0.8	)		(0.7	)		(6.6	)
Tax differential on foreign earnings		(2.5	)		(5.5	)		(34.0	)
Corrections of prior-year errors		–			–			26.0
Goodwill and contingent consideration		12.0			(8.2	)		90.0
Stock compensation		0.5			0.2			3.5
Valuation allowance		5.7			0.3			39.5
Other		0.1			0.8			0.9
Total income tax expense		51.2	%		24.7	%		112.0	%

Schedule of temporary differences comprising the net deferred income tax liability

	Fiscal Year Ended
	September 27, 2015			September 28, 2014
	(in thousands)
Deferred Tax Asset:
State taxes	$	1,746		$	2,635
Reserves and contingent liabilities		3,842			8,860
Allowance for doubtful accounts		4,115			6,084
Accrued liabilities		19,404			12,212
Stock-based compensation		10,516			10,273
Intangibles		2,910			1,159
Loss carry-forwards		5,512			10,815
Valuation allowance		(7,791	)		(7,576	)
Total deferred tax asset		40,254			44,462
Deferred Tax Liability:
Unbilled revenue		(46,513	)		(49,150	)
Prepaid expense		(5,506	)		(5,834	)
Intangibles		(33,068	)		(30,416	)
Property and equipment		(10,713	)		(8,235	)
Total deferred tax liability		(95,800	)		(93,635	)
Net deferred tax liability	$	(55,546	)	$	(49,173	)

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

	Fiscal Year Ended
	September 27, 2015			September 28, 2014			September 29, 2013
	(in thousands)
Beginning balance	$	21,717		$	25,886		$	24,092
Additions for current year tax positions		1,147			1,243			2,661
Additions for prior year tax positions		2,309			1,416			4,951
Reductions for prior year tax positions		(23	)		–			(5,818	)
Settlements		(3,532	)		(6,828	)		–
Ending balance	$	21,618		$	21,717		$	25,886