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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 28, 2013
Income Tax Disclosure [Abstract] |
Income from continuing operations by location, the provision (benefit) for income taxes and the effective tax rate | The following table reflects income from continuing operations by location, the provision (benefit) for income taxes and the effective tax rate for fiscal 2013, 2012, and 2011:
| Fiscal
(dollar amounts in thousands) | 2013 |  | 2012 |  | 2011
United States operations | $ | (4,340 | ) |  | $ | (6,111 | ) |  | $ | 33,531 |
Foreign operations | 71,008 |  |  | 180,362 |  |  | 128,897 |
Income from operations before tax | 66,668 |  |  | 174,251 |  |  | 162,428 |
Provision for income taxes | 7,310 |  |  | 13,671 |  |  | 34,818 |
Net income | $ | 59,358 |  |  | $ | 160,580 |  |  | $ | 127,610 |
Effective tax rate | 11.0 | % |  | 7.8 | % |  | 21.4 | %
Provision (benefit) for income taxes from continuing operations | The following table reflects the provision for income taxes from continuing operations for fiscal 2013, 2012, and 2011:
| Fiscal
(in thousands) | 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |
Federal | $ | (212 | ) |  | $ | 4,103 |  |  | $ | (90 | )
State | 291 |  |  | 942 |  |  | 1,099 |
Foreign | 1,732 |  |  | 5,497 |  |  | 14,764 |
Deferred: |  |  |  |  |
Federal | 985 |  |  | 4,169 |  |  | 17,463 |
State | 5 |  |  | 48 |  |  | 8 |
Foreign | 4,509 |  |  | (1,088 | ) |  | 1,574 |
Provision for income taxes | $ | 7,310 |  |  | $ | 13,671 |  |  | $ | 34,818 |
Effective income tax rate reconciliation | The following table reflects the difference between the provision for income taxes and the amount computed by applying the statutory federal income tax rate for fiscal 2013, 2012, and 2011:
| Fiscal
(in thousands) | 2013 |  | 2012 |  | 2011
Computed income tax expense based on U.S. statutory rate | $ | 23,334 |  |  | $ | 60,988 |  |  | $ | 56,850 |
Effect of earnings of foreign subsidiaries subject to different tax rates | (11,193 | ) |  | (30,067 | ) |  | (17,300 | )
Benefits from foreign approved enterprise zones | (9,626 | ) |  | (22,138 | ) |  | (21,079 | )
Effect of permanent items | 664 |  |  | 152 |  |  | 669 |
Changes in valuation allowance | 1,429 |  |  | 1,261 |  |  | (962 | )
Foreign operations (withholding taxes, deferred taxes on unremitted earnings, US taxation of foreign earnings) | 1,789 |  |  | 12,604 |  |  | 6,917 |
Reserve for uncertain tax positions | 683 |  |  | (7,626 | ) |  | 7,406 |
State income tax expense | (734 | ) |  | (394 | ) |  | 1,230 |
Other, net | 964 |  |  | (1,109 | ) |  | 1,087 |
Provision for income taxes | $ | 7,310 |  |  | $ | 13,671 |  |  | $ | 34,818 |
Net deferred tax balance | The following table reflects the net deferred tax balance, composed of the tax effects of cumulative temporary differences for fiscal 2013 and 2012:
| Fiscal
(in thousands) | 2013 |  | 2012
Inventory reserves | $ | 1,127 |  |  | $ | 2,933 |
Other accruals and reserves | 3,349 |  |  | 3,343 |
Net operating loss carryforwards | 779 |  |  | — |
Valuation allowance | (768 | ) |  | (2,761 | )
Total short-term deferred tax asset | $ | 4,487 |  |  | $ | 3,515 |
Total short-term deferred tax liability | 221 |  |  | — |
Net short-term deferred tax asset | $ | 4,266 |  |  | $ | 3,515 |
Domestic tax credit carryforwards | $ | 1,611 |  |  | $ | 628 |
Net operating loss carryforwards | 28,138 |  |  | 29,384 |
Stock options | 1,299 |  |  | 1,322 |
Other | 926 |  |  | 769 |
| 31,974 |  |  | 32,103 |
Valuation allowance | (25,676 | ) |  | (22,254 | )
Total long-term deferred tax asset (1) | $ | 6,298 |  |  | $ | 9,849 |
Repatriation of foreign earnings, including foreign withholding taxes | $ | 41,322 |  |  | $ | 40,770 |
Depreciable assets | 1,887 |  |  | (58 | )
Prepaid expenses and other | — |  |  | — |
Total long-term deferred tax liability | $ | 43,209 |  |  | $ | 40,712 |
Net long-term deferred tax liability | $ | 36,911 |  |  | $ | 30,863 |
Total net deferred tax liability | $ | 32,645 |  |  | $ | 27,348 |
(1) | Included in other assets on the Consolidated Balance Sheets are deferred tax assets of $3.8 million and $7.0 million as of September 28, 2013 and September 29, 2012, respectively.
Unrecognized tax benefits | The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for fiscal 2013, 2012, and 2011:
|  | Fiscal
(in thousands) |  | 2013 |  | 2012 |  | 2011
Unrecognized tax benefit, beginning of year |  | $ | 6,186 |  |  | $ | 13,702 |  |  | $ | 6,413 |
Additions for tax positions, current year |  | — |  |  | — |  |  | — |
Additions for tax positions, prior year |  | 2,485 |  |  | 110 |  |  | 7,585 |
Reductions for tax positions, prior year |  | (1,802 | ) |  | (7,626 | ) |  | (296 | )
Unrecognized tax benefit, end of year |  | $ | 6,869 |  |  | $ | 6,186 |  |  | $ | 13,702 |

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