Income Taxes (Tables)

12 Months Ended

Oct. 02, 2016

Income Taxes

Schedule of income before income taxes, by geographical area

	Fiscal Year Ended
	October 2, 2016		September 27, 2015			September 28, 2014
	(in thousands)
Income (loss) before income taxes:
United States	$	113,576	$	118,822		$	118,900
Foreign		10,890		(38,501	)		25,443
Total income before income taxes	$	124,466	$	80,321		$	144,343

Schedule of components of income tax expense

	Fiscal Year Ended
	October 2, 2016			September 27, 2015			September 28, 2014
				(in thousands)
Current:
Federal	$	22,277		$	23,836		$	26,503
State		5,634			5,072			7,551
Foreign		6,651			3,773			1,759
Total current income tax expense		34,562			32,681			35,813
Deferred:
Federal		6,231			7,218			5,957
State		(16	)		2,335			434
Foreign		(164	)		(1,141	)		(6,536	)
Total deferred income tax expense (benefit)		6,051			8,412			(145	)
Total income tax expense	$	40,613		$	41,093		$	35,668

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

	Fiscal Year Ended
	October 2, 2016			September 27, 2015			September 28, 2014
Tax at federal statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		3.1			5.0			3.4
Research and Development ("R&D") credits		(3.4	)		(3.8	)		(0.6	)
Domestic production deduction		(0.7	)		(0.8	)		(0.7	)
Tax differential on foreign earnings		(5.5	)		(2.5	)		(5.5	)
Non-deductible executive compensation		2.0			–			–
Goodwill and contingent consideration		–			12.0			(8.2	)
Stock compensation		0.3			0.5			0.2
Valuation allowance		2.4			5.7			0.3
Change in uncertain tax positions		(2.0	)		–			–
Other		1.4			0.1			0.8
Total income tax expense		32.6	%		51.2	%		24.7	%

Schedule of temporary differences comprising the net deferred income tax liability

	Fiscal Year Ended
	October 2, 2016			September 27, 2015
	(in thousands)
Deferred Tax Asset:
State taxes	$	697		$	1,746
Reserves and contingent liabilities		2,539			3,842
Allowance for doubtful accounts		3,817			4,115
Accrued liabilities		24,663			19,404
Stock-based compensation		10,684			10,516
Intangibles		–			2,910
Loss carry-forwards		23,514			5,512
Valuation allowance		(25,447	)		(7,791	)
Total deferred tax asset		40,467			40,254
Deferred Tax Liability:
Unbilled revenue		(54,638	)		(46,513	)
Prepaid expense		(2,921	)		(5,506	)
Intangibles		(33,268	)		(33,068	)
Property and equipment		(9,358	)		(10,713	)
Total deferred tax liability		(100,185	)		(95,800	)
Net deferred tax liability	$	(59,718	)	$	(55,546	)

Reconciliation of the beginning and ending amounts of unrecognized tax benefits

	Fiscal Year Ended
	October 2, 2016			September 27, 2015			September 28, 2014
	(in thousands)
Beginning balance	$	21,618		$	21,717		$	25,886
Additions for current year tax positions		2,802			1,147			1,243
Additions for prior year tax positions		1,466			2,309			1,416
Reductions for prior year tax positions		(3,100	)		(23	)		–
Settlements		–			(3,532	)		(6,828	)
Ending balance	$	22,786		$	21,618		$	21,717