XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.7.0.1

INCOME TAXES | 9 Months Ended
--- | ---
Jul. 01, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The following table reflects the provision for income taxes and the effective tax rate for the three and nine months ended July 1, 2017 and July 2, 2016:
| Three months ended |  | Nine months ended
(dollar amounts in thousands) | July 1, 2017 |  | July 2, 2016 |  | July 1, 2017 |  | July 2, 2016
Income tax (benefit)/expense | $ | (17,867 | ) |  | $ | 7,519 |  |  | $ | (10,377 | ) |  | $ | 13,299 |
Effective tax rate | (138.0 | )% |  | 19.1 | % |  | (15.9 | )% |  | 26.6 | %
During the third quarter of fiscal 2017, the Company has elected to adopt a foreign tax credit for its U.S. tax filings. As a result of this exercise, the Company has amended its U.S. tax returns from 2007 through 2015 and also filed its 2016 return on this same basis. Due to this tax position, the Company has recorded a favorable tax credit of $20.9 million in its third fiscal quarter. For the nine months ended July 1, 2017, the effective income tax rate differed from the federal statutory tax rate primarily due to tax benefits from electing to claim foreign tax credit, profits generated in foreign operations subject to a lower statutory tax rate than the federal rate, domestic research tax credit, and the impact of tax holiday, partially offset by an increase for deferred taxes on unremitted earnings, foreign withholding taxes, and tax liabilities from foreign operations. For the nine months ended July 2, 2016, the effective income tax rate differed from the federal statutory tax rate primarily due to tax benefits from profits in foreign operations subject to a lower statutory tax rate than the federal rate, tax benefits from domestic research expenditures, and the impact of tax holiday, partially offset by a tax liability arising from a settlement with a foreign tax authority, an increase for deferred taxes on unremitted earnings, foreign withholding taxes, and an increase in valuation allowance against certain foreign deferred tax assets. The increase in tax benefit for the three months ended July 1, 2017 of $(17.9) million from the tax expense for the three months ended July 2, 2016 of $7.5 million was primarily from electing to claim foreign tax credit and lower income before income tax in the quarter. The increase in tax benefit for the nine months ended July 1, 2017 of $(10.4) million from the tax expense for the nine months ended July 2, 2016 of $13.3 million was primarily due to tax benefits from electing to claim foreign tax credit in fiscal 2017 and a non-recurring settlement reached with a tax authority giving rise to additional tax liability, partially offset by tax benefits from a change in tax law that were recorded in fiscal 2016. The Company's future effective tax rate would be affected if earnings were lower than anticipated in countries where it has lower statutory rates and higher than anticipated in countries where it has higher statutory rates, by changes in the valuation of its deferred tax assets and liabilities, or by changes in tax laws, regulations, accounting principles, or interpretations thereof. In addition, changes in assertion for foreign earnings permanently or non-permanently reinvested as a result of changes in facts and circumstances could significantly impact the effective tax rate. The Company regularly assesses the effects resulting from these factors to determine the adequacy of its provision for income taxes. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months due to the expected lapse of statutes of limitation and / or settlements of tax examinations. The Company is under income tax examination by tax authorities in domestic and certain foreign jurisdictions.

X
- References No definition available. + 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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 Reference 4: 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=65882285&loc=d3e32639-109319 Reference 5: 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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration