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INCOME TAXES (Tables)

12 Months Ended

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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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
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-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=96868398&loc=d3e36027-109320

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