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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 29, 2018
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 or losses from continuing operations by location, the provision for income taxes and the effective tax rate for fiscal 2018, 2017, and 2016:
| Fiscal
(dollar amounts in thousands) | 2018 |  | 2017 |  | 2016
United States operations | $ | 25,211 |  |  | $ | (4,114 | ) |  | $ | (12,600 | )
Foreign operations | 152,338 |  |  | 122,629 |  |  | 68,764 |
Income from operations before tax | 177,549 |  |  | 118,515 |  |  | 56,164 |
Income tax expenses / (benefit) | $ | 120,744 |  |  | $ | (7,394 | ) |  | $ | 7,709 |
Effective tax rate | 68.0 | % |  | (6.2 | )% |  | 13.7 | %
Provision (benefit) for income taxes from continuing operations | The following table reflects the provision for income taxes from continuing operations for fiscal 2018, 2017, and 2016:
| Fiscal
(in thousands) | 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal | $ | 83,159 |  |  | $ | (3,975 | ) |  | $ | 871 |
State | 58 |  |  | 64 |  |  | 53 |
Foreign | 16,980 |  |  | 13,290 |  |  | 21,841 |
Deferred: |  |  |  |  |
Federal | 23,346 |  |  | (15,374 | ) |  | (13,423 | )
State | (2 | ) |  | 40 |  |  | 12 |
Foreign | (2,797 | ) |  | (1,439 | ) |  | (1,645 | )
Provision for income taxes | $ | 120,744 |  |  | $ | (7,394 | ) |  | $ | 7,709 |
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 2018, 2017, and 2016:
| Fiscal
(in thousands) | 2018 |  | 2017 |  | 2016
Computed income tax expense based on U.S. statutory rate | $ | 43,568 |  |  | $ | 41,358 |  |  | $ | 19,658 |
Effect of earnings of foreign subsidiaries subject to different tax rates | (12,947 | ) |  | (22,832 | ) |  | (7,584 | )
Benefits from foreign approved enterprise zones | (20,429 | ) |  | (23,294 | ) |  | (8,701 | )
Benefits from research and development tax credits | (2,785 | ) |  | (1,859 | ) |  | (2,839 | )
Benefits from foreign tax credits | (3,939 | ) |  | (26,119 | ) |  | — |
Provisional estimate for the one-time U.S. transition tax, net of uncertain tax positions and foreign tax credits | 101,854 |  |  | — |  |  | — |
Remeasurement of net U.S. deferred tax assets to reflect a reduction in the U.S. federal corporate tax rate | 2,760 |  |  | — |  |  | — |
Change in permanent reinvestment assertion | — |  |  | — |  |  | (9,696 | )
Tax impact on restructuring | — |  |  | — |  |  | 4,238 |
Tax audit settlement | — |  |  | — |  |  | 4,889 |
Effect of permanent items | (758 | ) |  | 778 |  |  | (2,274 | )
Non-deductible goodwill impairment | — |  |  | 8,805 |  |  | — |
Deferred taxes not benefited | 7,366 |  |  | 6,458 |  |  | 3,585 |
Foreign operations (withholding taxes, deferred taxes on unremitted earnings, US taxation of foreign earnings) | 5,746 |  |  | 6,039 |  |  | 4,981 |
Reserve for uncertain tax positions | 530 |  |  | 2,936 |  |  | 208 |
State income tax expense (net of federal benefit) | 56 |  |  | 60 |  |  | 996 |
Other, net | (278 | ) |  | 276 |  |  | 248 |
Provision for income taxes | $ | 120,744 |  |  | $ | (7,394 | ) |  | $ | 7,709 |
Net deferred tax balance | The following table reflects the net deferred tax balance, composed of the tax effects of cumulative temporary differences for fiscal 2018 and 2017:
| Fiscal
(in thousands) | 2018 |  | 2017
Inventory reserves | $ | 424 |  |  | $ | 589 |
Stock options | 301 |  |  | 422 |
Other accruals and reserves | 5,927 |  |  | 7,857 |
Domestic tax credit carryforwards | 4,532 |  |  | 17,635 |
Net operating loss carryforwards | 39,856 |  |  | 35,937 |
| $ | 51,040 |  |  | $ | 62,440 |
Valuation allowance | $ | (37,249 | ) |  | $ | (29,614 | )
Total long-term deferred tax asset | $ | 13,791 |  |  | $ | 32,826 |
Foreign withholding tax on undistributed earnings | $ | 21,988 |  |  | $ | 20,945 |
Fixed and intangible assets | 8,377 |  |  | 11,262 |
Total long-term deferred tax liability | $ | 30,365 |  |  | $ | 32,207 |
Total net deferred tax (liability) / asset | $ | (16,574 | ) |  | $ | 619 |
Reported as |  |  |
Deferred tax asset | $ | 9,017 |  |  | $ | 27,771 |
Deferred tax liability | 25,591 |  |  | 27,152 |
Total net deferred tax (liability) / asset | $ | (16,574 | ) |  | $ | 619 |
Unrecognized tax benefits | The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for fiscal 2018, 2017, and 2016:
|  | Fiscal
(in thousands) |  | 2017 |  | 2016 |  | 2015
Unrecognized tax benefit, beginning of year |  | $ | 12,062 |  |  | $ | 7,453 |  |  | $ | 7,101 |
Additions for tax positions, current year |  | 1,482 |  |  | 3,657 |  |  | 519 |
Additions for tax positions, prior year |  | — |  |  | 1,834 |  |  | 827 |
Reductions for tax positions, prior year |  | (506 | ) |  | (882 | ) |  | (994 | )
Unrecognized tax benefit, end of year |  | $ | 13,038 |  |  | $ | 12,062 |  |  | $ | 7,453 |

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