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Income taxes Income taxes (Tables) | 12 Months Ended
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Sep. 29, 2018
Income Tax Disclosure [Abstract] |
Schedule of income (loss) before provision for (benefit from) income taxes | The Company’s income (loss) before provision for (benefit from) income taxes for fiscal 2018, 2017 and 2016 were as follows:
| 2018 |  | 2017 |  | 2016
(In thousands)
Domestic | $ | 2,803 |  |  | $ | (25,005 | ) |  | $ | (47,285 | )
Foreign | (17,351 | ) |  | 8,497 |  |  | 11,715 |
Income (loss) before provision for (benefit from) income taxes | $ | (14,548 | ) |  | $ | (16,508 | ) |  | $ | (35,570 | )
Schedule of provision for (benefit from) income taxes | Components of the provision for (benefit from) income taxes consisted of the following:
| 2018 |  | 2017 |  | 2016
(In thousands)
Current: |  |  |  |  |
U.S. Federal | $ | — |  |  | $ | — |  |  | $ | 129 |
U.S. State | 177 |  |  | 62 |  |  | 59 |
Foreign | 816 |  |  | (3,791 | ) |  | 3,344 |
Total current | 993 |  |  | (3,729 | ) |  | 3,532 |
Deferred: |  |  |  |  |
U.S. Federal | (168 | ) |  | — |  |  | — |
U.S. State | — |  |  | — |  |  | — |
Foreign | 231 |  |  | 1,438 |  |  | (888 | )
Total deferred | 63 |  |  | 1,438 |  |  | (888 | )
Provision for (benefit from) income taxes | $ | 1,056 |  |  | $ | (2,291 | ) |  | $ | 2,644 |
Schedule of deferred tax assets and liabilities | Components of the Company’s net deferred income tax assets (liabilities) are as follows:
| 2018 |  | 2017
(In thousands)
Deferred tax assets |  |  |
Accrued expenses and reserves | $ | 5,639 |  |  | $ | 8,828 |
Deferred revenue | 10,317 |  |  | 218 |
Inventory deferral | — |  |  | 3,259 |
U.S. net operating loss carryforwards | 18,385 |  |  | 53,589 |
Foreign net operating loss carryforwards | 5,625 |  |  | 1,147 |
Tax credit carryforwards | 22,969 |  |  | 17,553 |
Stock-based compensation | 7,237 |  |  | 7,976 |
Amortization | 3,237 |  |  | 3,859 |
Other | 427 |  |  | 324 |
Total deferred tax assets | 73,836 |  |  | 96,753 |
Valuation allowance | (72,380 | ) |  | (94,956 | )
Deferred tax assets, net of valuation allowance | 1,456 |  |  | 1,797 |
Deferred tax liabilities |  |  |
Depreciation | (515 | ) |  | (690 | )
Total deferred tax liabilities | (515 | ) |  | (690 | )
Net deferred tax assets | $ | 941 |  |  | $ | 1,107 |
Summary of changes in valuation allowance | The following table summarizes changes in the valuation allowance for fiscal 2018, 2017 and 2016:
(In thousands) | 2018 |  | 2017 |  | 2016
Beginning balance | $ | 94,956 |  |  | $ | 95,882 |  |  | $ | 33,264 |
Increase (decrease) during the period | (22,576 | ) |  | (926 | ) |  | 19,535 |
Increase due to adoption of ASU 2016-09 | — |  |  | — |  |  | 43,083 |
Ending balance | $ | 72,380 |  |  | $ | 94,956 |  |  | $ | 95,882 |
Schedule of effective income tax rate reconciliation | Reconciliation of U.S. statutory federal income taxes to the Company’s provision for (benefit from) income taxes is as follows:
(In thousands) | 2018 |  | 2017 |  | 2016
U.S. federal income taxes at statutory rate | $ | (3,570 | ) |  | $ | (5,778 | ) |  | $ | (12,450 | )
U.S. state and local income taxes | (1,441 | ) |  | (2,454 | ) |  | (1,813 | )
Foreign income tax rate differential | (53 | ) |  | (1,101 | ) |  | (4,680 | )
Dutch tax settlement | — |  |  | 7,361 |  |  | — |
Stock-based compensation | 4,025 |  |  | 1,503 |  |  | 6,521 |
Research tax credits | (2,343 | ) |  | (1,787 | ) |  | (4,036 | )
Change in tax rate | 25,725 |  |  | — |  |  | (624 | )
Other | 259 |  |  | 1,197 |  |  | 191 |
Change in valuation allowance | (21,546 | ) |  | (1,232 | ) |  | 19,535 |
Provision for (benefit from) income taxes | $ | 1,056 |  |  | $ | (2,291 | ) |  | $ | 2,644 |
Schedule of changes in unrecognized tax benefits | Change in unrecognized tax benefits as a result of uncertain tax positions are as follows:
| 2018 |  | 2017
(In thousands)
Beginning balance | $ | 13,780 |  |  | $ | 11,496 |
Increase (decrease) - tax positions in prior periods | 636 |  |  | (23 | )
Increase (decrease) - tax positions in current periods | 3,378 |  |  | 2,307 |
Ending balance | $ | 17,794 |  |  | $ | 13,780 |

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