XML 93 R16.htm IDEA: XBRL DOCUMENT
v2.3.0.15

Note 9 Income Tax | 12 Months Ended
--- | ---
Oct. 01, 2011
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | Income Taxes Domestic and foreign components of income (loss) before income taxes were as follows:
| Year Ended
| October 1, 2011 |  | October 2, 2010 |  | October 3, 2009
| (In thousands)
Domestic | $ | 42,136 |  |  | $ | 60,668 |  |  | $ | (122,013 | )
Foreign | 57,402 |  |  | 78,574 |  |  | 9,443 |
Total | $ | 99,538 |  |  | $ | 139,242 |  |  | $ | (112,570 | )
The provision for income taxes consists of the following:
| Year Ended
| October 1, 2011 |  | October 2, 2010 |  | October 3, 2009
| (In thousands)
State-current | $ | 1,009 |  |  | $ | 1,656 |  |  | $ | 250 |
Foreign: |  |  |  |  |
Current | 31,749 |  |  | 11,766 |  |  | 24,303 |
Deferred | (2,137 | ) |  | 3,385 |  |  | 699 |
| 29,612 |  |  | 15,151 |  |  | 25,002 |
Total provision for income taxes | $ | 30,621 |  |  | $ | 16,807 |  |  | $ | 25,252 |
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are as follows:
| As of
| October 1, 2011 |  | October 2, 2010
| (In thousands)
Deferred tax assets: |  |  |
Reserves not currently deductible | $ | 26,256 |  |  | $ | 32,200 |
Accruals not currently deductible | 41,027 |  |  | 51,889 |
U.S. net operating loss carryforwards | 476,802 |  |  | 471,942 |
Foreign net operating loss carryforwards | 131,174 |  |  | 132,572 |
Acquisition related intangibles | 101,661 |  |  | 113,590 |
Depreciation differences and property, plant and equipment impairment reserves | 30,704 |  |  | 34,651 |
Tax credit carryforwards | 25,846 |  |  | 6,042 |
Unrealized losses on derivative financial instruments | 14,238 |  |  | 19,141 |
Stock compensation expense | 8,874 |  |  | 5,791 |
Other | 439 |  |  | 826 |
Valuation allowance | (818,266 | ) |  | (832,290 | )
Total deferred tax assets | 38,755 |  |  | 36,354 |
Deferred tax liabilities on foreign earnings | (22,053 | ) |  | (21,789 | )
Net deferred tax assets | $ | 16,702 |  |  | $ | 14,565 |
Recorded as: |  |  |
Current deferred tax assets | $ | 8,516 |  |  | $ | 5,742 |
Non-current deferred tax assets | 11,155 |  |  | 23,254 |
Non-current deferred tax liabilities | (2,969 | ) |  | (14,431 | )
Net deferred tax assets | $ | 16,702 |  |  | $ | 14,565 |
The Company offsets current deferred tax assets and liabilities and noncurrent deferred tax assets and liabilities by tax-paying jurisdiction. The resulting net amounts by tax jurisdiction are then aggregated without further offset. Based on historical evidence (primarily cumulative losses), the Company has a valuation allowance against its deferred tax assets in the U.S. and certain foreign jurisdictions. Net operating loss carryforwards are available to the Company to offset future taxable income in the U.S., subject to applicable tax laws and regulations. Although U.S. taxable income in 2010 and 2011 represents positive evidence regarding the realizability of net operating losses, the Company will continue to maintain a full valuation allowance on its net U.S. deferred tax assets until sufficient positive evidence exists to support reversal of the valuation allowance. Until such time that some or all of the valuation allowance is reversed, future income tax expense (benefit) in the U.S. will be offset by adjustments to the valuation allowance to effectively eliminate any income tax expense or benefit in the U.S. Income taxes will continue to be recorded for other tax jurisdictions subject to the need for valuation allowance in those jurisdictions. The Company's valuation allowance decreased by $14.0 million in 2011. As of October 1, 2011, U.S. income taxes have not been provided for approximately $364.5 million of cumulative undistributed earnings of several non-U.S. subsidiaries. The Company intends to reinvest these earnings indefinitely in operations outside of the U.S. Determination of the amount of unrecognized deferred tax liability on these undistributed earnings is not practicable. As of October 1, 2011, the Company has cumulative net operating loss carryforwards for federal, state and foreign tax purposes of $1,218.6 million, $1,008.3 million and $436.8 million, respectively. The federal and state net operating loss carryforwards begin expiring in 2023 and 2011, respectively, and expire at various dates through 2029. Substantially all of the foreign net operating loss carryforwards may be carried forward indefinitely. The Tax Reform Act of 1986 and similar state provisions impose restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an “ownership change” as defined in the Internal Revenue Code. As of October 1, 2011, the Company had $20.7 million of federal net operating losses subject to an annual limitation and may utilize approximately $1.7 million of these net operating losses each year. The Company has been granted tax holidays for certain of its subsidiaries in Singapore, Malaysia, Thailand, China and India. The tax benefit arising from these tax holidays was $3.6 million for 2011 ($0.04 per diluted share), $3.8 million for 2010 ($0.05 per diluted share), and $3.0 million for 2009 ($0.04 per diluted share). The tax holiday in Malaysia expired in 2009, and the tax holidays in the other countries expire through 2019, excluding potential renewals, and are subject to certain conditions with which the Company expects to comply. Following is a reconciliation of the statutory federal tax rate to the Company's effective tax rate:
| As of
| October 1, 2011 |  | October 2, 2010 |  | October 3, 2009
Federal tax at statutory rate | 35.00 | % |  | 35.00 | % |  | (35.00 | )%
Effect of foreign operations | 9.57 |  |  | (8.87 | ) |  | 17.85 |
Foreign income inclusion | 0.25 |  |  | 1.11 |  |  | 24.72 |
Change in valuation allowance | (16.97 | ) |  | (17.16 | ) |  | 4.65 |
Permanent items | 1.90 |  |  | 0.80 |  |  | 9.99 |
State income taxes, net of federal benefit | 1.01 |  |  | 1.19 |  |  | 0.22 |
Provision for income taxes | 30.76 | % |  | 12.07 | % |  | 22.43 | %
A reconciliation of the beginning and ending amount of total unrecognized tax benefits, excluding accrued penalties and interest, is as follows:
| Year Ended
| October 1, 2011 |  | October 2, 2010
| (In thousands)
Balance, beginning of year | $ | 34,997 |  |  | $ | 42,315 |
Increase related to prior year tax positions | 4,324 |  |  | 1,296 |
Decrease related to prior year tax positions | (2,811 | ) |  | (13,972 | )
Increase related to current year tax positions | 5,337 |  |  | 5,405 |
Decrease related to lapse of statute of limitations | (365 | ) |  | (47 | )
Balance, end of year | $ | 41,482 |  |  | $ | 34,997 |
The total balance of unrecognized tax benefits at October 1, 2011, if recognized, would affect the effective tax rate on income. As of October 1, 2011, the Company had reserves of $19.5 million for the payment of interest and penalties relating to unrecognized tax benefits. The Company accrued interest and penalties related to unrecognized tax benefits of $2.7 million in 2011, $3.9 million in 2010, and $0.3 million in 2009. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company conducts business globally and, as a result, files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. In general, the Company is no longer subject to United States federal or state income tax examinations for years before 2003, and to foreign examinations for years prior to 2002 in its major foreign jurisdictions. Although the timing of the resolution of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years subject to audit and the number of matters being examined, the Company is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration