INCOME TAXES (Tables)

12 Months Ended

Sep. 28, 2013

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