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--10-02
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PLEXUS CORP
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<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>5.</b></td>
<td width="1%"> </td>
<td><b>Derivatives</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> All derivatives are recognized in the accompanying Condensed Consolidated Balance Sheets at their estimated fair value. On the date a derivative contract is entered into, the Company designates the derivative as a hedge of a recognized asset or liability (a "fair value" hedge), a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (a "cash flow" hedge), or a hedge of the net investment in a foreign operation. The Company currently has cash flow hedges related to variable rate debt and foreign currency obligations. The Company does not enter into derivatives for speculative purposes. Changes in the fair value of the derivatives that qualify as cash flow hedges are recorded in "Accumulated other comprehensive income" in the accompanying Condensed Consolidated Balance Sheets until earnings are affected by the variability of the cash flows. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In June 2008, the Company entered into three interest rate swap contracts related to the $150 million in term loans under the Credit Facility that had an initial total notional value of $150 million and mature on April 4, 2013. These interest rate swap contracts will pay the Company variable interest at the three month LIBOR rate, and the Company will pay the counterparties a fixed interest rate. The fixed interest rates for each of these contracts are 4.415%, 4.490% and 4.435%, respectively. These interest rate swap contracts were entered into to convert $150 million of the variable rate term loan under the Credit Facility into fixed rate debt. Based on the terms of the interest rate swap contracts and the underlying debt, these interest rate contracts were determined to be effective, and thus qualify as a cash flow hedge. As such, any changes in the fair value of these interest rate swaps are recorded in "Accumulated other comprehensive income" on the accompanying Condensed Consolidated Balance Sheets until earnings are affected by the variability of cash flows. The total fair value of these interest rate swap contracts was $9.0 million and $9.3 million as of October 2, 2010 and October 3, 2009, respectively. As of October 2, 2010, the total combined notional amount of the Company's three interest rate swaps was $112.5 million. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company's Malaysian operations have entered into forward exchange contracts on a rolling basis with a total notional value of $42.0 million as of October 2, 2010. These forward contracts fix the exchange rates on foreign currency cash used to pay a portion of local currency expenses. The changes in the fair value of the forward contracts are recorded in "Accumulated other comprehensive income" on the accompanying Condensed Consolidated Balance Sheets until earnings are affected by the variability of cash flows. The total fair value of the forward contracts was $2.6 million and $0.5 million at October 2, 2010 and October 3, 2009, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on the Company's Consolidated Balance Sheets:</div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr valign="bottom"><td width="1%"> </td>
<td width="17%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="13%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="16%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 1px;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="29" nowrap="nowrap" align="left"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="27" nowrap="nowrap" align="center"><b>Fair Values of Derivative Instruments</b></td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="left"><i>In thousands of dollars</i></td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 0px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="11" nowrap="nowrap" align="center"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 0px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 0px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="11" nowrap="nowrap" align="center"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="11" nowrap="nowrap" align="center">Asset Derivatives</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="11" nowrap="nowrap" align="center">Liability Derivatives</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 2,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 3,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 2,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 3,</td>
<td style="border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">2010</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">2009</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" align="center">2010</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">2009</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 0px solid;" width="1%"> </td>
<td style="border-top: #000000 0px solid;" valign="top">
<div style="text-indent: 0px; margin-left: 0px;">Derivatives designated <br />as hedging instruments </div></td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" align="center">Balance Sheet<br />Location </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="bottom" colspan="3" nowrap="nowrap" align="center">Fair Value </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="bottom" colspan="3" nowrap="nowrap" align="center">Fair Value </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" align="center">Balance Sheet<br />Location </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="bottom" colspan="3" nowrap="nowrap" align="center">Fair Value </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="bottom" colspan="3" nowrap="nowrap" align="center">Fair Value </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 0px solid;" width="1%"> </td>
<td style="border-top: #000000 1px solid;" valign="top">
<div style="text-indent: -15px; margin-left: 30px;">Interest rate swaps </div></td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="left"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">-</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">-</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="center">Current liabilities – <br />Other </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">3,616</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">2,072</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 1px solid;" width="1%"> </td>
<td style="border-top: #000000 1px solid;" valign="top">
<div style="text-indent: -15px; margin-left: 30px;">Interest rate swaps </div></td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="left"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="right">-</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="right">-</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="center">Other liabilities </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="top" align="right">5,423</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="top" align="right">7,253</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 1px solid;" width="1%"> </td>
<td style="border-top: #000000 1px solid;" valign="top">
<div style="text-indent: -15px; margin-left: 30px;">Forward contracts </div></td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="center">Prepaid expenses<br />and other </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">2,612</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">530</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="left"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 1px;" valign="bottom"><td style="border-top: #000000 1px solid;" colspan="29" nowrap="nowrap" align="left"> </td></tr></table></div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr valign="bottom"><td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 1px;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="35" nowrap="nowrap" align="left"> </td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td colspan="37" nowrap="nowrap" align="center"><b>The Effect of Derivative Instruments on the Statements of Operations</b></td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td colspan="37" nowrap="nowrap" align="center"><b>for the Twelve Months Ended</b></td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="37" nowrap="nowrap" align="left"><i>In thousands of dollars</i></td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">Amount of Gain or</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">Location of Gain or (Loss)</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center">Amount of Gain or (Loss)</td>
<td style="border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td rowspan="5" nowrap="nowrap" align="center">Derivatives in Cash<br />Flow Hedging <br />Relationships</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">(Loss) Recognized in</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">Recognized in Income on</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center">Recognized in Income on</td>
<td style="border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">Other Comprehensive</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td align="center">Location of Gain or (Loss)</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">Amount of Gain or (Loss)</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-right: #000000 0px solid;" nowrap="nowrap" align="center">Derivative (Ineffective</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-right: #000000 1px solid;" colspan="5" nowrap="nowrap" align="center">Derivative (Ineffective</td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">Income ("OCI") on</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td align="center">Reclassified from </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">Reclassified from</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">Portion and Amount</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-right: #000000 1px solid;" colspan="5" nowrap="nowrap" align="center">Portion and Amount</td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">Derivative (Effective</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">Accumulated OCI into</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="8" nowrap="nowrap" align="center">Accumulated OCI into</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">Excluded from</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center">Excluded from</td>
<td style="border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="8" nowrap="nowrap" align="center">Portion)</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">Income (Effective Portion)</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="8" nowrap="nowrap" align="center">Income (Effective Portion)</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" nowrap="nowrap" align="center">Effectiveness Testing)</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;" colspan="5" align="center">Effectiveness Testing)</td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td nowrap="nowrap" align="left"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 2,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 3,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center"> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 2,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">October 3,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">October 2,</td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td nowrap="nowrap" align="center">October 3,</td>
<td style="border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="left"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">2010</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">2009</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="center"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">2010</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">2009</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="center">2010</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="center">2009</td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 0px solid;" width="1%"> </td>
<td style="border-top: #000000 0px solid;" valign="top">
<div style="text-indent: 0px; margin-left: 0px;">Interest rate swaps </div></td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 0px solid;" valign="top" align="right">(4,622</td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap">)</td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 0px solid;" valign="top" align="right">(10,037</td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap">)</td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap" align="left">Interest income (expense) </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 0px solid;" valign="top" align="right">(4,908</td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap">)</td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 0px solid;" valign="top" align="right">(3,668</td>
<td style="border-top: #000000 0px solid;" valign="top" nowrap="nowrap">)</td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" align="left">Other income (expense) </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" align="left"> $ - </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 0px solid;"> </td>
<td style="border-top: #000000 0px solid;" valign="top" align="left"> $ - </td>
<td style="border-top: #000000 0px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 1px solid;" width="1%"> </td>
<td style="border-top: #000000 1px solid;" valign="top">
<div style="text-indent: 0px; margin-left: 0px;">Forward contracts </div></td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">4,110</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">530</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="left">Selling and administrative expenses </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">2,028</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="right">$</td>
<td style="border-top: #000000 1px solid;" valign="bottom" align="right">-</td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="left">Other income (expense) </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="left"> $ - </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" valign="bottom" nowrap="nowrap" align="left"> $ - </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 1px;" valign="bottom"><td style="border-top: #000000 1px solid;" colspan="35" nowrap="nowrap" align="left"> </td></tr></table></div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company adopted accounting guidance on September 28, 2008, for fair value measurements of financial assets and liabilities. The Company adopted this guidance for non-financial assets and liabilities on October 4, 2009. This accounting guidance defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting guidance established a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are: </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The following table lists the fair values of the Company's financial instruments as of October 2, 2010, by input level as defined above: </div>
<div style="margin-left: 5%;" align="right">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="95%">
<tr valign="bottom"><td width="1%"> </td>
<td width="54%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 1px;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="23" nowrap="nowrap" align="left"> </td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid; border-left: #000000 1px solid;" width="1%"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid;" colspan="17" nowrap="nowrap" align="center"><b>Fair Value Measurements Using Input Levels (in thousands):</b></td>
<td style="border-bottom: #000000 1px solid;"> </td>
<td style="border-bottom: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 8pt;" valign="bottom"><td style="border-left: #000000 1px solid;" width="1%"> </td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Level 1</b></td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Level 2</b></td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Level 3</b></td>
<td> </td>
<td style="border-right: #000000 1px solid;"> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Total</b></td>
<td> </td>
<td style="border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 1px solid;" width="1%">
<p align="left"> </p></td>
<td style="border-top: #000000 1px solid;">
<div style="text-indent: -15px; margin-left: 15px;" align="left">Derivatives</div></td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 1px solid;" width="1%"> </td>
<td style="border-top: #000000 1px solid;">
<div style="text-indent: -15px; margin-left: 30px;" align="left">Interest rate swaps</div></td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">-</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">9,039</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">-</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">9,039</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td style="border-left: #000000 1px solid; border-top: #000000 1px solid;" width="1%"> </td>
<td style="border-top: #000000 1px solid;">
<div style="text-indent: -15px; margin-left: 30px;" align="left">Forward currency forward contracts</div></td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">-</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">2,612</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">-</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid;" align="left">$</td>
<td style="border-top: #000000 1px solid;" align="right">2,612</td>
<td style="border-top: #000000 1px solid;"> </td>
<td style="border-top: #000000 1px solid; border-right: #000000 1px solid;" width="1%"> </td></tr>
<tr style="font-size: 1px;" valign="bottom"><td style="border-top: #000000 1px solid;" colspan="23" nowrap="nowrap" align="left"> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The fair value of interest rate swaps and foreign currency forward contracts is determined using a market approach, which includes obtaining directly or indirectly observable values from third parties active in the relevant markets. The primary input in the fair value of the interest rate swaps is the relevant LIBOR forward curve. Inputs in the fair value of the foreign currency forward contracts include prevailing forward and spot prices for currency and interest rate forward curves. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As of October 2, 2010, we held $2.0 million of auction rate securities maturing on March 17, 2042, which were classified as "other" long-term assets and whose underlying assets are in guaranteed student loans that are backed by a U. S. government agency. </div></div> </div>
<div> <div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>12.</b></td>
<td width="1%"> </td>
<td><b>Litigation</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2010, the Company determined that it would incur expenses up to approximately $1.1 million relating to non-conforming inventory received from a supplier, for which we expect partial recovery during fiscal 2011. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> We were notified in April 2009 by U.S. Customs and Border Protection ("CBP") of its intention to conduct a customary Focused Assessment of our import activities during fiscal 2008 and of our processes and procedures to comply with U.S. Customs laws and regulations. During September 2010 the Company reported errors relating to import trade activity from July 2004 to the date of Plexus' report. The Company is currently awaiting final determination of CBP duties and fees. Plexus has agreed that it will implement improved processes and procedures and review these corrective measures with CBP. At this time, we do not believe that any deficiencies in processes or controls or unanticipated costs, unpaid duties or penalties associated with this matter will have a material adverse effect on Plexus or the Company's consolidated financial position, results of operations or cash flows. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In December 2009, the Company received settlement funds of approximately $3.2 million related to a court case in which the Company was a plaintiff. The settlement related to prior purchases of inventory and therefore was recorded as a reduction of cost of sales. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company is party to certain other lawsuits in the ordinary course of business. Management does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows. </div></div> </div>
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>4.</b></td>
<td width="1%"> </td>
<td><b>Debt, Capital Lease Obligations and Other Financing</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Debt and capital lease obligations as of October 2, 2010 and October 3, 2009, consisted of (in thousands): </div>
<div align="left">
<table style="margin-left: 10%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="70%">
<tr valign="bottom"><td width="45%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;"><b>Debt</b>:</div></td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="top" align="right"> </td>
<td valign="top"> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;" align="justify">Borrowings under term loan, expiring on April 4, 2013, interest rate of base rate or LIBOR rate plus 1.00%. See also Note 5, Derivatives. </div></td>
<td> </td>
<td valign="bottom" nowrap="nowrap" align="left">$</td>
<td valign="bottom" align="right">112,500</td>
<td valign="top"> </td>
<td> </td>
<td valign="bottom" nowrap="nowrap" align="left">$</td>
<td valign="bottom" align="right">127,500</td>
<td valign="top"> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;"> </div></td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right"> </td>
<td valign="top"> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;"><b>Capital lease</b>:</div></td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right"> </td>
<td valign="top"> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;" align="justify">Capital lease obligations for equipment and facilities located in San Diego, Kelso, Scotland (2009 only) and Xiamen, China, expiring on various dates through 2017; weighted average interest rates of 10.2% and 9.5% for fiscal 2010 and 2009, respectively.</div></td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right">17,375</td>
<td valign="top"> </td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right">22,570</td>
<td valign="top"> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;"> </div></td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right"> </td>
<td valign="top"> </td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right"> </td>
<td valign="top"> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;">Less: current portion </div></td>
<td> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right">(17,409</td>
<td valign="top" nowrap="nowrap">)</td>
<td valign="top"> </td>
<td valign="top" nowrap="nowrap" align="right"> </td>
<td valign="bottom" align="right">(16,907</td>
<td valign="top" nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" align="right"> </td>
<td style="border-top: #000000 1px solid;" valign="top" nowrap="nowrap"> </td></tr>
<tr valign="bottom"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;" align="justify">Long-term debt and capital lease obligations, net of current portion </div></td>
<td> </td>
<td valign="bottom" nowrap="nowrap" align="left">$</td>
<td valign="bottom" align="right">112,466</td>
<td valign="top" nowrap="nowrap"> </td>
<td> </td>
<td valign="bottom" nowrap="nowrap" align="left">$</td>
<td valign="bottom" align="right">133,163</td>
<td valign="top" nowrap="nowrap"> </td></tr>
<tr style="font-size: 1px;"><td valign="top">
<div style="text-indent: 0px; margin-left: 0px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 3px double;" valign="top" align="right"> </td>
<td style="border-top: #000000 3px double;" valign="top" nowrap="nowrap"> </td>
<td> </td>
<td style="border-top: #000000 3px double;" valign="top" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 3px double;" valign="top" align="right"> </td>
<td style="border-top: #000000 3px double;" valign="top" nowrap="nowrap"> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In February 2010, the Company negotiated the settlement of a capital lease in Kelso, Scotland. The termination of this capital lease obligation and acquisition of the property was effected through a cash payment by Plexus of $3.9 million. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The aggregate scheduled maturities of the Company's debt obligations as of October 2, 2010, are as follows (in thousands): </div>
<div align="left">
<table style="margin-left: 15%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="52%">
<tr valign="bottom"><td width="39%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2011</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,000</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2012</div></td>
<td> </td>
<td> </td>
<td align="right">15,000</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2013</div></td>
<td> </td>
<td> </td>
<td align="right">82,500</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Total</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">112,500</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The aggregate scheduled maturities of the Company's obligations under capital leases as of October 2, 2010, are as follows (in thousands): </div>
<div align="left">
<table style="margin-left: 15%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="52%">
<tr valign="bottom"><td width="39%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2011</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,067</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2012</div></td>
<td> </td>
<td> </td>
<td align="right">3,760</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2013</div></td>
<td> </td>
<td> </td>
<td align="right">3,853</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2014</div></td>
<td> </td>
<td> </td>
<td align="right">3,944</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">2015</div></td>
<td> </td>
<td> </td>
<td align="right">4,038</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Thereafter</div></td>
<td> </td>
<td> </td>
<td align="right">3,608</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td align="right">23,270</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Less: interest portion of capital leases</div></td>
<td> </td>
<td> </td>
<td align="right">5,895</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Total</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17,375</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> On April 4, 2008, the Company entered into our Credit Facility with a group of banks which allows the Company to borrow $150 million in term loans and $100 million in revolving loans. The $150 million in term loans was immediately funded and the $100 million revolving credit facility is currently available. The Credit Facility is unsecured and may be increased by an additional $100 million (the "accordion feature") if the Company has not previously terminated all or any portion of the Credit Facility, there is no event of default existing under the credit agreement and both the Company and the administrative agent consent to the increase. The Credit Facility expires on April 4, 2013. Borrowings under the Credit Facility may be either through term loans, revolving or swing loans or letter of credit obligations. As of October 2, 2010, the Company has term loan borrowings of $112.5 million outstanding and no revolving borrowings under the Credit Facility. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Credit Facility contains certain financial covenants, which include a maximum total leverage ratio, maximum value of fixed rentals and operating lease obligations, a minimum interest coverage ratio and a minimum net worth test, all as defined in the agreement. As of October 2, 2010, the Company was in compliance with all debt covenants. If the Company incurs an event of default, as defined in the Credit Facility (including any failure to comply with a financial covenant), the group of banks has the right to terminate the remaining Credit Facility and all other obligations, and demand immediate repayment of all outstanding sums (principal and accrued interest). The interest rate on borrowing varies depending upon the Company's then-current total leverage ratio; as of October 2, 2010, the Company could elect to pay interest at a defined base rate or the LIBOR rate plus 1.00%. Rates would increase upon negative changes in specified Company financial metrics and would decrease upon reduction in the current total leverage ratio to no less than LIBOR plus 1.00%. The Company is also required to pay an annual commitment fee on the unused credit commitment based on its leverage ratio; the current fee is 0.25%. Unless the accordion feature is exercised, this fee applies only to the initial $100 million of availability (excluding the $150 million of term borrowings). Origination fees and expenses associated with the Credit Facility totaled approximately $1.3 million and have been deferred. These origination fees and expenses will be amortized over the five-year term of the Credit Facility. Quarterly principal repayments of the term loan of $3.75 million per quarter began June 30, 2008 and end on April 4, 2013 with a balloon repayment of $75.0 million. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Credit Facility allows for the future payment of cash dividends or the future repurchases of shares provided that no event of default (including any failure to comply with a financial covenant) is existing at the time of, or would be caused by, a dividend payment or a share repurchase. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Interest expense related to the commitment fee and amortization of deferred origination fees and expenses for the Credit Facility totaled approximately $0.7 million, $0.7 million and $0.5 million for fiscal 2010, 2009 and 2008, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Cash paid for interest in fiscal 2010, 2009 and 2008 was $9.2 million, $10.5 million and $4.2 million, respectively. </div></div> </div>
9421000
15153000
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>10.</b></td>
<td width="1%"> </td>
<td><b>Restructuring and Asset Impairment Charges</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Fiscal 2010 restructuring and asset impairment charges: </i>For fiscal 2010, the Company did not incur any restructuring or impairment charges. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Fiscal 2009 restructuring and asset impairment charges: </i>For fiscal 2009, we recorded pre-tax restructuring and asset impairment charges of $8.6 million, related to goodwill impairment in our Europe reportable segment, the closure of our Ayer, Massachusetts ("Ayer") facility and the reduction of our workforce across our facilities in the United States and Juarez, Mexico ("Juarez"). The details of these fiscal 2009 restructuring actions are listed below: </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <u>Goodwill Impairment:</u> During the second quarter of fiscal 2009, the Company recorded a goodwill impairment charge of $5.7 million, writing off the entire carrying value of our goodwill related to our Kelso, Scotland ("Kelso") facility. The impairment charge was driven by macroeconomic conditions that contributed to an overall reduction in demand for the Company's offerings from the Kelso facility. These conditions led to an "interim triggering event", leading management to perform an interim goodwill impairment test. This test resulted in the determination that the carrying value of the goodwill relating to Kelso was fully impaired and therefore an impairment charge of $5.7 million was recorded. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <u>Ayer Facility Closure:</u> During the third quarter of fiscal 2009, we closed our Ayer facility. In fiscal 2009, we recorded pre-tax restructuring charges of $0.4 million, related to the disposal of certain assets and costs to exit this leased facility. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <u>Other Restructuring Charges.</u> In fiscal 2009, we recorded pre-tax restructuring charges of $2.0 million related to severance at facilities in the United States as well as Juarez. These workforce reductions affected approximately 450 employees. We also recorded approximately $0.5 million of asset impairment charges at Corporate. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Fiscal 2008 restructuring and asset impairment charges: </i>For fiscal 2008, we recorded pre-tax restructuring and asset impairment charges of $2.1 million, related to the closure of our Ayer facility and the restructuring of our workforce in Juarez. The details of these fiscal 2008 restructuring actions are listed below: </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <u>Ayer Facility Closure:</u> During the fourth quarter of fiscal 2008, we announced our intention to close our Ayer facility. In fiscal 2008, we recorded pre-tax restructuring charges of $1.9 million, related to severance for 170 impacted employees and costs to retain certain employees. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <u>Other Restructuring Charges.</u> In fiscal 2008, we recorded pre-tax restructuring charges of $0.2 million related to severance at our Juarez facility. The Juarez workforce reductions affected approximately 20 employees. </div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt; margin-left: 4%; font-size: 10pt;" align="left"> A detail of restructuring and asset impairment charges are provided below (in thousands): </div>
<div align="right">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="96%">
<tr valign="bottom"><td width="35%"> </td>
<td width="2%"> </td>
<td width="5%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="11%"> </td>
<td width="8%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td colspan="3" nowrap="nowrap" align="center">Employee</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center">Lease</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td colspan="3" nowrap="nowrap" align="center">Termination and</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center">Obligations and</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center">Non-cash Asset</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td colspan="3" nowrap="nowrap" align="center">Severance Costs</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center">Other Exit Costs</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center">Impairments</td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center">Total</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td style="border-top: #000000 1px solid;" colspan="16" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Accrued balance, September 29, 2007</b></div></td>
<td> </td>
<td align="left">$</td>
<td align="right">989</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">989</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Restructuring and asset impairments charges</div></td>
<td> </td>
<td> </td>
<td align="right">2,350</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,350</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Adjustment to provisions</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(231</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(231</td>
<td nowrap="nowrap">)</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Amount utilized</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,070</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,070</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Accrued balance, September 27, 2008</b></div></td>
<td> </td>
<td> </td>
<td align="right">2,038</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,038</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Restructuring and asset impairments charges</div></td>
<td> </td>
<td> </td>
<td align="right">2,196</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">876</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,748</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,820</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Adjustment to provisions</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(249</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(249</td>
<td nowrap="nowrap">)</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Amount utilized</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,941</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(790</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,748</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,479</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Accrued balance, October 3, 2009</b></div></td>
<td> </td>
<td> </td>
<td align="right">44</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">86</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">130</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Restructuring and asset impairments charges</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Adjustment to provisions</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Amount utilized</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(44</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(86</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(130</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Accrued balance, October 2, 2010</b></div></td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> For a detail of restructuring and asset impairment charges by reportable segment, see Note 13 — Reportable Segment, Geographic Information and Major Customers. </div></div> </div>
233061000
360686000
193222000
311205000
4680000
6865000
366371000
399054000
8737000
8737000
9421000
9421000
9536000
9536000
1000000
1400000
1022672000
1290379000
798434000
1025991000
154109000
165970000
258382000
188244000
11861000
92412000
-70138000
0.01
0.01
200000000
200000000
46994000
47849000
46402000
39326000
39548000
39548000
40403000
40403000
470000
478000
1635861000
1461846000
1806471000
978000
978000
28180000
27301000
562000
-1173000
-3189000
15057000
18959000
10305000
11787000
29219000
34468000
40152000
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>11.</b></td>
<td width="1%"> </td>
<td><b>Benefit Plans</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Employee Stock Purchase Plans: </i>The shareholder-approved 2005 Employee Stock Purchase Plan (the "2005 Purchase Plan") allowed for qualified employees to participate in the purchase of the Company's common stock. The 2005 Purchase Plan expired on June 30, 2010. The Company issued 6,976 shares under the 2005 Purchase Plan during fiscal 2008. Purchases under the 2005 Purchase Plan were terminated by the board of directors in January 2008; therefore, no shares were issued pursuant to the 2005 Purchase Plan in fiscal 2009 or fiscal 2010. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>4</i><i>01(k)</i><i> Savings Plan: </i>The Company's 401(k) Savings Plan covers all eligible U.S. employees. Effective January 1, 2010, the Company began matching employee contributions up to 4 percent of eligible earnings. Previously, the Company matched employee contributions up to 2.5 percent of eligible earnings. The Company's contributions for fiscal 2010, 2009 and 2008 totaled $4.9 million, $2.9 million and $2.8 million, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Stock-based Compensation Plans: </i>In February 2008, the Company's shareholders approved the Plexus Corp. 2008 Long-Term Incentive Plan (the "2008 Plan"), a stock-based incentive plan for officers, key employees and directors; the 2008 Plan includes provisions by which the Company may grant stock-based awards, including stock options, stock-settled stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), unrestricted stock awards ("SAs") and performance stock, in addition to cash awards, to directors, executive officers and other officers and key employees. The maximum number of shares of Plexus common stock which may be issued pursuant to the 2008 Plan is 5,500,000 shares; in addition, long-term cash awards of up to $1.5 million may be granted annually. The exercise price of each stock option and SAR granted must not be less than the fair market value on the date of grant. The Compensation and Leadership Development Committee (the "Committee") of the Board of Directors may establish a term and vesting period for stock options, SARs, RSUs and other awards under the 2008 Plan as well as accelerate the vesting of such awards. Generally, stock options vest in two annual installments and have a term of ten years, SARs vest in two annual installments and have a term of seven years, and RSUs fully vest on the third anniversary of the grant date (assuming continued employment), which is also the date as of which the underlying shares will be issued. </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The 2008 Plan replaced the shareholder-approved 2005 Equity Incentive Plan (the "2005 Plan"). The 2005 Plan constituted a stock-based incentive plan for the Company and included provisions by which the Company could grant stock-based awards to directors, executive officers and other officers and key employees. The maximum number of shares of Plexus common stock that could be issued pursuant to the 2005 Plan was 2.7 million shares, all of which could be issued pursuant to stock options, although up to 1.2 million shares could be issued pursuant to the following: up to 0.6 million shares as SARs and up to 0.6 million shares as RSUs. The exercise price of each stock option granted must not have been less than the fair market value on the date of grant. The Committee could establish the term and vesting period of stock options, as well as accelerate the vesting of stock options. Unless otherwise directed by the Committee, stock options vested over a three-year period from date of grant and had a term of ten years. In fiscal 2007, the Committee established that the vesting period for stock options would be two years. The 2005 Plan terminated upon the approval of the 2008 Plan, except that outstanding awards continue until expiration. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Stock option and SARs grants are determined annually, but granted on a quarterly basis. However, grants of RSUs and long-term cash awards are generally made only on an annual basis. In fiscal 2009, the Company made a special grant consisting solely of RSUs to certain key employees (excluding our Chief Executive Officer) to encourage retention, but did not make similar special grants in fiscal 2010. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> For options issued to the members of the Board of Directors in fiscal 2009 and 2008, 50 percent of their stock options vested immediately at the date of grant. Their remaining stock options vested on the first anniversary of the grant date. For options issued to the members of the Board of Directors in fiscal 2010, all of their stock options vested immediately on the date of grant. In fiscal 2010, the Company granted members of the board of directors SAs, which vested immediately on grant. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2010, under the 2008 Plan, the Company granted options, which had a term of ten years, to purchase 0.3 million shares of the Company's common stock and 0.3 million stock-settled SARs, which had a term of seven years. Additionally, the Committee made awards of RSUs for 0.1 million shares of common stock and long-term cash awards that totaled $0.9 million, all of which vest on the third anniversary of grant. In addition, in fiscal 2010, the Committee granted SAs for 0.1 million shares of common stock. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2009, under the 2008 Plan, the Company granted options, which had a term of ten years, to purchase 0.3 million shares of the Company's common stock and 0.3 million stock-settled SARs, which had a term of seven years. Additionally, the Committee made awards of RSUs for 0.2 million shares of common stock and long-term cash awards that totaled $1.0 million, all of which vest on the third anniversary of grant. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2008, under the 2005 Plan, the Company granted options, which had a term of ten years, to purchase 0.1 million shares of the Company's common stock and 0.2 million stock-settled SARS, which had a term of seven years. Additionally, under the 2008 Plan, the Company granted options, which had a term of ten years, to purchase 0.1 million shares of the Company's common stock and 0.2 million stock-settled SARs, which had a term of seven years. The Company also made awards of RSUs, under the 2005 Plan, for 0.1 million shares of common stock and long-term cash awards that totaled $0.2 million, all of which vest on the third anniversary of grant. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company recognized $9.5 million, $9.4 million, and $8.7 million of compensation expense associated with stock options, SARs, RSUs and SAs for the fiscal years ended October 2, 2010, October 3, 2009 and September 27, 2008, respectively. The related deferred tax benefit recognized was $3.2 million, $2.4 million, and $2.0 million for the fiscal years ended October 2, 2010, October 3, 2009, and September 27, 2008.
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> A summary of the Company's stock option and SAR activity follows: </div></div></div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="94%">
<tr valign="bottom"><td width="56%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Number of</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Aggregate</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Shares</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Average Exercise</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Intrinsic Value</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Price</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>(in thousands)</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="11" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Outstanding as of September 29, 2007</div></td>
<td> </td>
<td> </td>
<td align="right">3,378</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25.13</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Granted</div></td>
<td> </td>
<td> </td>
<td align="right">563</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26.62</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Cancelled</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(185</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">36.66</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Exercised</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(363</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">14.93</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Outstanding as of September 27, 2008</div></td>
<td> </td>
<td> </td>
<td align="right">3,393</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25.88</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Granted</div></td>
<td> </td>
<td> </td>
<td align="right">614</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19.71</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Cancelled</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(166</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">28.75</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Exercised</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(223</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">15.43</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Outstanding as of October 3, 2009</div></td>
<td> </td>
<td> </td>
<td align="right">3,618</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25.34</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Granted</div></td>
<td> </td>
<td> </td>
<td align="right">603</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">32.29</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Cancelled</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(122</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">34.18</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Exercised</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(910</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">25.80</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Outstanding as of October 2, 2010</div></td>
<td> </td>
<td> </td>
<td align="right"><b>3,189</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>26.18</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>21,576</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="94%">
<tr valign="bottom"><td width="56%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Number of</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Aggregate</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Shares</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Average Exercise</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Intrinsic Value</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Price</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>(in thousands)</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="11" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Exercisable as of:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 90px;" align="left">September 27, 2008</div></td>
<td> </td>
<td> </td>
<td align="right">2,533</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24.78</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 90px;" align="left">October 3, 2009</div></td>
<td> </td>
<td> </td>
<td align="right">2,815</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26.36</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 90px;" align="left">October 2, 2010</div></td>
<td> </td>
<td> </td>
<td align="right"><b>2,365</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>25.37</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>18,175</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Included in the table above are 335,022 and 310,071 SARs, which were granted in fiscal 2010 and 2009, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The following table summarizes outstanding stock option and SAR information as of October 2, 2010 (shares in thousands): </div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="94%">
<tr valign="bottom"><td width="15%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="2%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="2%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="2%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="7%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Number of</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Weighted</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Weighted</td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Number of</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Weighted</td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td nowrap="nowrap" align="center">Range of</td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Shares</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Average</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Average</td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Shares</td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center">Average</td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="center">Exercise Prices</td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">Outstanding</td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">Exercise Price</td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">Remaining Life</td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">Exercisable</td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">Exercise Price</td></tr>
<tr valign="bottom"><td align="right">
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td align="right">
<div style="text-indent: -15px; margin-left: 15px;">$ 8.97 - $14.63 </div></td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">495</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">13.29</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.6</td>
<td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">432</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">13.10</td>
<td> </td></tr>
<tr valign="bottom"><td align="right">
<div style="text-indent: -15px; margin-left: 15px;">$14.64 - $20.95 </div></td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">459</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">18.09</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.5</td>
<td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">334</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">17.56</td>
<td> </td></tr>
<tr valign="bottom"><td align="right">
<div style="text-indent: -15px; margin-left: 15px;">$20.96 - $29.84 </div></td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">1,203</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">24.68</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.5</td>
<td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">1,014</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">24.53</td>
<td> </td></tr>
<tr valign="bottom"><td align="right">
<div style="text-indent: -15px; margin-left: 15px;">$29.85 - $53.50 </div></td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">1,032</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">37.70</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.5</td>
<td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right">585</td>
<td> </td>
<td> </td>
<td align="right">$ </td>
<td align="right">40.35</td>
<td> </td></tr>
<tr valign="bottom"><td align="right">
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td align="right">
<div style="text-indent: -15px; margin-left: 15px;"><b>$8.97 - $53.50</b> </div></td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right"><b>3,189</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$ </b></td>
<td align="right"><b>26.18</b></td>
<td> </td>
<td> </td>
<td> </td>
<td align="right"><b>5.7</b></td>
<td> </td>
<td style="border-right: #000000 3px double;"> </td>
<td> </td>
<td> </td>
<td align="right"><b>2,365</b></td>
<td> </td>
<td> </td>
<td align="right"><b>$ </b></td>
<td align="right"><b>25.37</b></td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company continues to use the Black-Scholes valuation model to value options and SARs. The Company used its historical stock prices as the basis for its volatility assumptions. The assumed risk-free rates were based on U.S. Treasury rates in effect at the time of grant with a term consistent with the expected option and SAR lives. The expected option and SAR lives represent the period of time that the options and SARs granted are expected to be outstanding and were based on historical experience. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The weighted average fair value per share of options and SARs issued for the fiscal years ended October 2, 2010, October 3, 2009 and September 27, 2008 were $14.25, $8.72 and $11.30, respectively. The fair value of each option and SAR grant was estimated at the date of grant using the Black-Scholes option-pricing model based on the assumption ranges below: </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="94%">
<tr valign="bottom"><td width="34%"> </td>
<td width="5%"> </td>
<td width="17%"> </td>
<td width="5%"> </td>
<td width="17%"> </td>
<td width="5%"> </td>
<td width="17%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="5" nowrap="nowrap" align="center"><b>Years Ended</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td>
<td nowrap="nowrap" align="center"><b>September 27,</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" nowrap="nowrap" align="center"><b>2008</b></td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td valign="top" align="center"> </td>
<td> </td>
<td valign="top" align="center"> </td>
<td> </td>
<td valign="top" align="center"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Expected life (years)</div></td>
<td> </td>
<td valign="top" align="center">4.40 – 5.00</td>
<td> </td>
<td valign="top" align="center">4.40 – 4.90</td>
<td> </td>
<td valign="top" align="center">3.75 – 5.48</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Risk-free interest rate</div></td>
<td> </td>
<td valign="top" nowrap="nowrap" align="center">1.61 – 5.00%</td>
<td> </td>
<td valign="top" nowrap="nowrap" align="center">1.76 – 5.00%</td>
<td> </td>
<td valign="top" nowrap="nowrap" align="center">2.59 – 5.00%</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Expected volatility</div></td>
<td> </td>
<td valign="top" align="center">46 – 55%</td>
<td> </td>
<td valign="top" nowrap="nowrap" align="center">46 – 55%</td>
<td> </td>
<td valign="top" align="center">46 – 66%</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Weighted average volatility</div></td>
<td> </td>
<td valign="top" align="center">48%</td>
<td> </td>
<td valign="top" align="center">48%</td>
<td> </td>
<td valign="top" align="center">53%</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Dividend yield</div></td>
<td> </td>
<td valign="top" align="center">-</td>
<td> </td>
<td valign="top" align="center">-</td>
<td> </td>
<td valign="top" align="center">-</td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The fair value of options and SARs vested for fiscal years ended October 2, 2010, October 3, 2009 and September 27, 2008 were $3.1 million, $6.3 million and $5.0 million, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> For the fiscal years ended October 2, 2010 and October 3, 2009, the total intrinsic value of options and SARs exercised was $8.5 million and $1.2 million, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As of October 2, 2010, there was $7.1 million of unrecognized compensation cost related to non-vested options and SARs that is expected to be recognized over a weighted average period of 1.37 years. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> A summary of the Company's RSUs and SAs activity follows: </div>
<div align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="94%">
<tr valign="bottom"><td width="54%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Number of</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Average Fair</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Aggregate</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Shares</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Value at Date of</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Intrinsic Value</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>(in thousands)</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Grant</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>(in thousands)</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="11" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Units outstanding as of September 27, 2008</div></td>
<td> </td>
<td> </td>
<td align="right">99</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">30.54</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Granted</div></td>
<td> </td>
<td> </td>
<td align="right">210</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21.73</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Cancelled</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">24.86</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Vested</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Units outstanding as of October 3, 2009</div></td>
<td> </td>
<td> </td>
<td align="right">298</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24.54</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Granted</div></td>
<td> </td>
<td> </td>
<td align="right">115</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33.99</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Cancelled</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">26.95</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Vested</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33.99</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Units outstanding as of October 2, 2010</div></td>
<td> </td>
<td> </td>
<td align="right"><b>385</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>26.90</b></td>
<td> </td>
<td> </td>
<td align="left"><b>$</b></td>
<td align="right"><b>11,797</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company uses the fair value at the date of grant to value RSUs and SAs. The fair value of SAs that vested for the fiscal year ended October 2, 2010 was $0.5 million. There were not any RSUs that vested during the fiscal year ended October 2, 2010, nor were there any RSUs or SAs that vested during the fiscal years ending October 3, 2009 or September 27, 2008. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As of October 2, 2010, there was $4.4 million of unrecognized compensation cost related to RSU awards that is expected to be recognized over a weighted average period of 1.75 years. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Deferred Compensation Arrangements: </i>In September 1996, the Company entered into agreements with certain of its former executive officers to provide nonqualified deferred compensation. Under those agreements, the Company agreed to pay to these former executives, or their designated beneficiaries upon such executives' deaths, certain amounts annually for the first 15 years subsequent to their retirements. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2009, in connection with a review of deferred compensation agreements, it was determined that the deferred compensation agreements were not being administered by Plexus as was originally intended and that two former executives had been overpaid by Plexus in previous years. Previously, the supplemental executive retirement agreements provided that future payments were to be adjusted, depending upon the performance of underlying investments; the original intent of these agreements was for a fixed 15-year annual installment payment stream. In August 2009 amendments were entered into in order to align the provisions regarding the determination of payment amounts to a fixed 15-year annual installment payment stream. The amendments were consistent with the intent of the original agreements and with the manner in which the agreement had operated in practice. </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2000, the Company established a supplemental executive retirement plan (the "SERP") as an additional deferred compensation plan for executive officers and other key employees. Under the SERP, a covered executive may elect to defer some or all of the participant's compensation into the plan, and the Company may credit the participant's account with a discretionary employer contribution. Participants are entitled to payment of deferred amounts and any related earnings upon termination or retirement from Plexus. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2003, due to changes in the law, Plexus terminated a split-dollar life insurance program under the SERP and replaced it with a rabbi trust arrangement (the "Trust"). The Trust allows investment of deferred compensation held on behalf of the participants into individual accounts and, within these accounts, into one or more designated investments. Investment choices do not include Plexus stock. In fiscal 2010, 2009 and 2008, the Company made contributions to the participants' SERP accounts in the amount of $0.2 million, $0.2 million and $0.5 million, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As of October 2, 2010 and October 3, 2009, the SERP assets held in the Trust totaled $6.0 million and $5.3 million, respectively, and the related liability to the participants totaled approximately $4.0 million and $3.7 million as of October 2, 2010 and October 3, 2009, respectively. The Trust assets are subject to the claims of the Company's creditors. The Trust assets and the related liabilities to the participants are included in "Other assets" and "Other liabilities", respectively, in the accompanying Consolidated Balance Sheets. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Other: </i>The Company is not obligated to provide any postretirement medical or life insurance benefits to employees. </div></div> </div>
1.94
1.18
2.24
1.92
1.17
2.19
<div> <div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>8.</b></td>
<td width="1%"> </td>
<td><b>Earnings Per Share</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The following is a reconciliation of the amounts utilized in the computation of basic and diluted earnings per share (in thousands, except per share amounts): </div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="92%">
<tr valign="bottom"><td width="49%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="6%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="12" nowrap="nowrap" align="center"><b>Years Ended</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center"><b>September 27,</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2008</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td style="border-top: #000000 1px solid;" colspan="12" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Earnings:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Net income</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">89,533</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">46,327</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">84,144</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Basic weighted average common shares outstanding</div></td>
<td> </td>
<td> </td>
<td align="right">40,051</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,411</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43,340</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Dilutive effect of stock options</div></td>
<td> </td>
<td> </td>
<td align="right">780</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">243</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">510</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Diluted weighted average shares outstanding</div></td>
<td> </td>
<td> </td>
<td align="right">40,831</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39,654</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43,850</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Earnings per share:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Basic</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2.24</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.18</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.94</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Diluted</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2.19</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.17</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.92</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In fiscal 2010, 2009 and 2008, stock options and stock-settled stock appreciation rights ('SARs") to purchase approximately 1.2 million, 2.7 million and 1.5 million shares, respectively, were outstanding but were not included in the computation of diluted earnings per share because the options' and SARs' exercise prices were greater than the average market price of the common shares and, therefore, their effect would be antidilutive. In fiscal 2009 and 2008, restricted stock units ("RSUs") of approximately 20,000 and 90,000 units, respectively, were outstanding but were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. In fiscal 2010 there were no anti-dilutive RSUs outstanding. </div></div> </div>
-1581000
-3920000
38000
28169000
46639000
1603000
445000
2115000
-39000
-54000
-236000
5748000
205761000
154776000
206922000
102615000
45419000
90437000
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>6.</b></td>
<td width="1%"> </td>
<td><b>Income Taxes</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The domestic and foreign components of income (loss) before income taxes for fiscal 2010, 2009 and 2008 consisted of (in thousands): </div>
<div style="margin-left: 5%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="80%">
<tr valign="bottom"><td width="55%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2008</b></u></td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">U.S.</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,742</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(5,380</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">49,449</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Foreign</div></td>
<td> </td>
<td> </td>
<td align="right">98,179</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,799</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53,166</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">90,437</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">45,419</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">102,615</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="1%" nowrap="nowrap" align="left"> </td>
<td width="1%"> </td>
<td>Income tax expense (benefit) for fiscal 2010, 2009 and 2008 consisted of (in thousands):</td></tr></table></div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr valign="bottom"><td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2008</b></u></td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Current:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Federal</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,666</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">15,593</td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">State</div></td>
<td> </td>
<td> </td>
<td align="right">74</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">121</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">949</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Foreign</div></td>
<td> </td>
<td> </td>
<td align="right">4,019</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,809</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,367</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td align="right">4,093</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">264</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17,909</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Deferred:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Federal</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,029</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(622</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">443</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">State</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(459</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">954</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25</td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Foreign</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,701</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,504</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">94</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,189</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,172</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">562</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">904</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(908</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">18,471</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; font-size: 10pt;" align="left"> The following is a reconciliation of the federal statutory income tax rate to the effective income tax rates reflected in the Consolidated Statements of Operations for fiscal 2010, 2009 and 2008: </div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr valign="bottom"><td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2008</b></u></td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Federal statutory income tax rate</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">35.0</td>
<td nowrap="nowrap">%</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Increase (decrease) resulting from:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 45px;" align="left">Permanent differences</div></td>
<td> </td>
<td> </td>
<td align="right">0.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 45px;" align="left">State income taxes, net of federal income tax</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1.6</td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 45px;" align="left">Foreign income and tax rate differences</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(34.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(40.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(18.5</td>
<td nowrap="nowrap">)</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 45px;" align="left">Other, net</div></td>
<td> </td>
<td> </td>
<td align="right">0.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.3</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.1</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Effective income tax rate</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">1.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.0</td>
<td nowrap="nowrap">)%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">18.0</td>
<td nowrap="nowrap">%</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; font-size: 10pt;" align="left"> The Company recorded income tax expense of $0.9 million for fiscal 2010. The Company recorded income tax benefit of $(0.9) million for fiscal 2009 and tax expense of $18.5 million for fiscal 2008. The reduction to the income tax expense recorded as compared to our normal statutory rates is primarily due to the effect of pre-tax income in Malaysia and Xiamen, China, which benefit from reduced effective tax rates due to tax holidays. </div>
<div style="margin-top: 6pt; font-size: 10pt;" align="left"> The components of the net deferred income tax asset as of October 2, 2010 and October 3, 2009, consisted of (in thousands): </div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr valign="bottom"><td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Deferred income tax assets:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Loss/credit carryforwards</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">10,904</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5,864</td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Goodwill</div></td>
<td> </td>
<td> </td>
<td align="right">3,550</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,313</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Inventories</div></td>
<td> </td>
<td> </td>
<td align="right">7,936</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,867</td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Accrued benefits</div></td>
<td> </td>
<td> </td>
<td align="right">14,473</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,611</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Allowance for bad debts</div></td>
<td> </td>
<td> </td>
<td align="right">383</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">267</td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Interest rate swaps</div></td>
<td> </td>
<td> </td>
<td align="right">3,504</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,898</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Other</div></td>
<td> </td>
<td> </td>
<td align="right">3,917</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,527</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Total gross deferred income tax assets</div></td>
<td> </td>
<td> </td>
<td align="right">44,667</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,347</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 60px;" align="left">Less valuation allowance</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,547</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,547</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Deferred income tax assets</div></td>
<td> </td>
<td> </td>
<td align="right">42,120</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,800</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Deferred income tax liabilities:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Property, plant and equipment</div></td>
<td> </td>
<td> </td>
<td align="right">10,346</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,253</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Other</div></td>
<td> </td>
<td> </td>
<td align="right">1,028</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,185</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr style="background: #ffffff;" valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Deferred income tax liabilities</div></td>
<td> </td>
<td> </td>
<td align="right">11,374</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,438</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Net deferred income tax asset</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">30,746</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,362</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As a result of using the with-and-without method under the requirements for accounting for stock based compensation, the Company recorded a valuation allowance for state taxes against the amount of net operating loss and credit carryforwards related to tax deductions in excess of compensation expense for stock options until such time as the related deductions actually reduce income taxes payable. During fiscal 2008 and 2009 the Company realized a reduction of its state income taxes payable from state net operating loss carryforwards. Consequently, the Company reversed approximately $0.1 million and $0.6 million of this valuation allowance with corresponding credits to additional paid in capital in fiscal years 2009 and 2008, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In addition, there is a remaining valuation allowance of $1.6 million as of October 2, 2010, related to various state deferred income tax assets where it is more likely than not that the asset will not be realized due to a lack of sustained profitability and limited carryforward periods in these states. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In October 2007, Mexico adopted a series of new tax laws, effective beginning on January 1, 2008. These laws did not have a material effect on our fiscal 2009 and fiscal 2010 tax years. However, these laws could have an effect on the taxes levied on our Mexican income in the future. On November 1, 2009, Mexico adopted tax reform legislation that took effect January 1, 2010, and provides for a temporary increase in its income tax and value added tax rates from 28% to 30% and 15% to 16%, respectively, along with certain other changes. These laws did not have a material impact on our effective income tax rate in our fiscal 2010 year; however, it could have a material effect on future periods. On November 5, 2009, the United States adopted the "Worker, Homeownership, and Business Assistance Act of 2009", which provides for an increase in the net operating loss carryback period from two years to five years for tax periods beginning or ending in calendar years 2008 and 2009, along with certain other tax law changes. This law did not have a material impact on our effective tax rate in fiscal 2010 and we do not currently believe that it will create a material impact on our effective income tax rate in future periods. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In March 2007, the Chinese government made significant changes to its tax law with a bias toward a unified tax rate for domestic and foreign enterprises of 25 percent. The law was effective on January 1, 2008. The effect of the law on enterprises with agreed-upon incentives requires that their China federal taxes will be increased to the new unified tax rate over a five-year period beginning in calendar 2008. This law did not have a material effect on our income taxes for our fiscal 2010 or 2009 tax years. However, depending upon the relative amount of income earned in China in the future, the increased tax rates on our China income could have a material effect. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In July 2005, the United Kingdom enacted the Finance Act (the "Finance Act"), which limits the deduction of interest expense incurred in the United Kingdom when the corresponding interest income earned by the other party is not taxable to such party. The Company currently extends loans from a U.S. subsidiary to a United Kingdom subsidiary, which is affected by the Finance Act. For fiscal years 2010, 2009 and 2008, management provided income tax expense for the effect of the Finance Act on the non-deductibility of this interest expense based on proposed agreement with the tax authorities in the United Kingdom regarding the application of the Finance Act to the Company's circumstances. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company has been granted tax holidays for its Malaysian and Xiamen, China subsidiaries. These tax holidays expire in 2019 and 2013, respectively, and are subject to certain conditions with which the Company expects to comply. We have received approval to extend our tax holiday in Malaysia for a period of five years through December 31, 2024, subject to certain conditions. In fiscal 2010, 2009 and 2008, these subsidiaries generated income, which resulted in tax reductions of approximately $23.0 million, $15.2 million and $13.6 million, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company does not provide for taxes that would be payable if undistributed earnings of foreign subsidiaries were remitted because the Company considers these earnings to be invested for an indefinite period. The aggregate undistributed earnings of the Company's foreign subsidiaries for which a deferred income tax liability has not been recorded was approximately $309.0 million as of October 2, 2010. If such earnings were repatriated, additional tax expense may result, although the calculation of such additional taxes is not practicable at this time. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In October 2004, the American Jobs Creation Act of 2004 (the "Jobs Act") was signed into law in the United States. The Jobs Act includes a deduction of 85 percent of certain foreign earnings that are repatriated, as defined in the Jobs Act. During fiscal 2010, 2009 and 2008, the Company did not repatriate any qualified earnings pursuant to the Jobs Act. </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As of October 2, 2010, the Company had approximately $69.2 million of state net operating loss carryforwards that expire between fiscal 2011 and 2027. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Cash paid for income taxes in fiscal 2010, 2009 and 2008 was $3.5 million, $2.9 million and $22.7 million, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In June 2006, the FASB issued an interpretation addressing the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements by standardizing the level of confidence needed to recognize uncertain tax benefits and the process for measuring the amount of benefit to recognize. The interpretation also provided guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Effective at the beginning of fiscal 2008, the Company adopted the interpretation. As a result of adopting the interpretation, the Company recorded an increase in income tax liabilities for uncertain tax benefits of $0.8 million and a decrease in valuation allowance of approximately $1.8 million, which together resulted in a cumulative effect adjustment to retained earnings of $1.0 million. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As required by the regulation, the Company has classified the amounts recorded for uncertain tax positions in the Consolidated Balance Sheets as "Other liabilities" (non-current) to the extent that payment is not anticipated within one year. Prior year financial statements have not been restated. Presented below is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits: </div>
<div align="center">
<table style="width: 531px; height: 144px; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="531">
<tr valign="bottom"><td width="50%"> </td>
<td width="5%"> </td>
<td width="6%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Balance at beginning of fiscal 2010</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4.8</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Gross increases for tax positions of prior years</div></td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Gross increases for tax positions of the current year</div></td>
<td> </td>
<td> </td>
<td align="right">1.0</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Gross decreases for tax positions of prior years</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Settlements</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Balance at October 2, 2010</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5.9</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Approximately $4.8 million of the balance as of October 2, 2010, would reduce the Company's effective tax rate if recognized. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The total accrued penalties and net accrued interest with respect to income taxes were approximately $0.5 million, $0.3 million and $0.4 million as of October 2, 2010, October 3, 2009 and September 27, 2008, respectively. The Company recognized $0.2 million of expense for accrued penalties and net accrued interest in the Consolidated Statements of Operations for the year ended October 2, 2010. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> During the second quarter of fiscal 2009, tax expense decreased by approximately $1.4 million, consisting of approximately $1.6 million, including interest, related to the conclusion of federal and state audits, which resulted in a reduction of the liability related to uncertainty in income taxes, offset by an additional provision of $0.2 million for changes in state tax laws. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> It is reasonably possible that a number of uncertain tax positions related to federal and state tax positions may be settled within the next 12 months. Settlement of these matters is not expected to have a material effect on the Company's consolidated results of operations, financial position and cash flows. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Upon adoption of the interpretation and also as of October 2, 2010, the Company had tax years from fiscal 2007 and forward open and subject to examination by the Internal Revenue Service ("IRS"). For the major state tax jurisdictions, the Company has fiscal 2001 and forward open and subject to examination. </div></div> </div>
18471000
-908000
904000
-1548000
4630000
122226000
-22402000
59137000
-117449000
19994000
-8766000
36877000
16486000
1568000
-911000
-64159000
16904000
-169469000
-6813000
2086000
-5108000
6543000
10875000
9589000
<div> <div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>2.</b></td>
<td width="1%"> </td>
<td><b>Inventories</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Inventories as of October 2, 2010 and October 3, 2009 consisted of (in thousands): </div>
<div align="left">
<table style="margin-left: 9%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="70%">
<tr valign="bottom"><td width="42%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td></tr>
<tr style="font-size: 5pt;" valign="bottom"><td colspan="8"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Raw materials</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">365,883</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">237,717</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Work-in-process</div></td>
<td> </td>
<td> </td>
<td align="right">56,036</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,399</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Finished goods</div></td>
<td> </td>
<td> </td>
<td align="right">70,511</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55,236</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">492,430</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">322,352</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Per contractual terms, customer deposits are received by the Company to offset obsolete and excess inventory risks. The total amount of deposits related to inventory and included within current liabilities on the accompanying Consolidated Balance Sheets as of October 2, 2010 and October 3, 2009 were $25.8 million and $26.1 million, respectively. </div></div> </div>
322352000
492430000
7661000
2323000
1436000
1022672000
1290379000
339321000
502519000
155905000
136005000
133163000
112466000
16907000
17409000
-49649000
-16879000
2256000
-1090000
-57085000
-74394000
64181000
170296000
1962000
84144000
84144000
46327000
46327000
89533000
89533000
102934000
101709000
107270000
102827000
53067000
99652000
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>9.</b></td>
<td width="1%"> </td>
<td><b>Operating Lease Commitments</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company has a number of operating lease agreements primarily involving manufacturing facilities, manufacturing equipment and computerized design equipment. These leases are non-cancelable and expire on various dates through 2021. Rent expense under all operating leases for fiscal 2010, 2009 and 2008 was approximately $11.8 million, $11.9 million and $11.5 million, respectively. Renewal and purchase options are available on certain of these leases. </div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Future minimum annual payments on operating leases are as follows (in thousands): </div>
<div align="center">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="30%">
<tr valign="bottom"><td width="10%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">2011</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">8,554</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">2012</div></td>
<td> </td>
<td> </td>
<td align="right">7,961</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">2013</div></td>
<td> </td>
<td> </td>
<td align="right">7,076</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">2014</div></td>
<td> </td>
<td> </td>
<td align="right">6,405</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">2015</div></td>
<td> </td>
<td> </td>
<td align="right">4,368</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Thereafter</div></td>
<td> </td>
<td> </td>
<td align="right">6,035</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">40,399</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b> </b></td>
<td width="1%"> </td>
<td><b> </b></td></tr></table></div></div> </div>
16464000
16887000
882000
882000
-2917000
-2917000
212000
212000
83306000
40233000
91718000
-1720000
-1720000
-3177000
-3177000
1973000
1973000
33004000
50484000
22742000
23539000
-1330000
904000
-1062000
200110000
53400000
54329000
57427000
74674000
0.01
0.01
5000000
5000000
0
0
0
0
150000000
177000
239000
342000
280000
106400000
5418000
3402000
21040000
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>14.</b></td>
<td width="1%"> </td>
<td><b>Guarantees</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company offers certain indemnifications under its customer manufacturing agreements. In the normal course of business, the Company may from time to time be obligated to indemnify its customers or its customers' customers against damages or liabilities arising out of the Company's negligence, misconduct, breach of contract, or infringement of third party intellectual property rights. Certain agreements have extended broader indemnification, and while most agreements have contractual limits, some do not. However, the Company generally does not provide for such indemnities and seeks indemnification from its customers for damages or liabilities arising out of the Company's adherence to customers' specifications or designs or use of materials furnished, or directed to be used, by its customers. The Company does not believe its obligations under such indemnities are material. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In the normal course of business, the Company also provides its customers a limited warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranty generally provides that products will be free from defects in the Company's workmanship and meet mutually agreed-upon specifications for periods generally ranging from 12 months to 24 months. If a product fails to comply with the Company's limited warranty, the Company's obligation is generally limited to correcting, at its expense, any defect by repairing or replacing such defective product. The Company's warranty generally excludes defects resulting from faulty customer-supplied components, design defects or damage caused by any party or cause other than the Company. </div></div>
<div style="margin-top: 6pt; font-family: 'Times New Roman',Times,serif; margin-left: 4%; font-size: 10pt;" align="left"> The Company provides for an estimate of costs that may be incurred under its limited warranty at the time product revenue is recognized and establishes additional reserves for specifically identified product issues. These costs primarily include labor and materials, as necessary, associated with repair or replacement and are included in our Consolidated Balance Sheets in other current accrued liabilities. The primary factors that affect the Company's warranty liability include the value and the number of shipped units and historical and anticipated rates of warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. </div>
<div style="margin-top: 6pt; font-family: 'Times New Roman',Times,serif; margin-left: 4%; font-size: 10pt;" align="left"> Below is a table summarizing the activity related to the Company's limited warranty liability for the fiscal years 2010 and 2009 (in thousands): </div>
<div style="font-family: 'Times New Roman',Times,serif; margin-left: 6%;" align="left">
<table style="width: 512px; height: 205px; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="512">
<tr valign="bottom"><td width="81%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="12%"> </td>
<td width="1%"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Limited warranty liability, as of September 27, 2008</b></div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,052</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Accruals for warranties issued during the period</div></td>
<td> </td>
<td> </td>
<td align="right">507</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Settlements (in cash or in kind) during the period</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(89</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Limited warranty liability, as of October 3, 2009</b></div></td>
<td> </td>
<td> </td>
<td align="right">4,470</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Accruals for warranties issued during the period</div></td>
<td> </td>
<td> </td>
<td align="right">557</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Settlements (in cash or in kind) during the period</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(972</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Limited warranty liability, as of October 2, 2010</b></div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,055</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div> </div>
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>3.</b></td>
<td width="1%"> </td>
<td><b>Property, Plant and Equipment</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Property, plant and equipment as of October 2, 2010 and October 3, 2009, consisted of (in thousands): </div>
<div align="left">
<table style="margin-left: 9%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="70%">
<tr valign="bottom"><td width="42%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td></tr>
<tr style="font-size: 5pt;" valign="bottom"><td colspan="8"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Land, buildings and improvements</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">138,230</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">120,505</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Machinery and equipment</div></td>
<td> </td>
<td> </td>
<td align="right">255,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">220,402</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Computer hardware and software</div></td>
<td> </td>
<td> </td>
<td align="right">79,108</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">72,782</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Construction in progress</div></td>
<td> </td>
<td> </td>
<td align="right">22,145</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,727</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td align="right">494,621</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">425,416</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Less: accumulated depreciation</div></td>
<td> </td>
<td> </td>
<td align="right">258,907</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">227,947</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">235,714</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">197,469</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Assets held under capital leases and included in property, plant and equipment as of October 2, 2010 and October 3, 2009 consisted of (in thousands): </div>
<div align="left">
<table style="margin-left: 9%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="70%">
<tr valign="bottom"><td width="42%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td></tr>
<tr style="font-size: 5pt;" valign="bottom"><td colspan="8"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Buildings and improvements</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">22,700</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28,260</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Machinery and equipment</div></td>
<td> </td>
<td> </td>
<td align="right">1,803</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">939</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td align="right">24,503</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,199</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Less: accumulated amortization</div></td>
<td> </td>
<td> </td>
<td align="right">8,905</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,600</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,598</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">21,599</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The building and improvements category in the above table includes a manufacturing facility in San Diego, California, which was closed during fiscal 2003 and is no longer used. The Company subleased a portion of the facility during fiscal 2003 and the remaining portion during fiscal 2005. The San Diego facility is recorded at the net present value of the sublease income, net of cash outflows for broker commissions and building improvements associated with the subleases. The net book value of the San Diego facility is reduced on a monthly basis by the amortization of the sublease cash receipts, net of certain cash outflows associated with the subleases. The net book value of the San Diego facility, adjusted for impairment, is approximately $11.6 million as of October 2, 2010. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Amortization of assets held under capital leases totaled $1.0 million, $0.9 million, and $0.8 million for fiscal 2010, 2009 and 2008, respectively. Capital lease additions were $0.9 million and $0.3 million for fiscal 2010 and fiscal 2009, respectively. There were no capital lease additions in fiscal 2008. </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As of October 2, 2010 and October 3, 2009, accounts payable included approximately $6.3 million and $1.4 million, respectively, related to the purchase of property, plant and equipment, which have been treated as non-cash transactions for purposes of the Consolidated Statements of Cash Flows. </div></div> </div>
197469000
235714000
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;" align="left">
<table style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td width="3%"> </td>
<td width="1%"> </td>
<td> </td></tr>
<tr valign="top"><td nowrap="nowrap" align="left"><b>15.</b></td>
<td> </td>
<td><b>Quarterly Financial Data (Unaudited)</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Summarized quarterly financial data for fiscal 2010 and 2009 consisted of (in thousands, except per share amounts): </div>
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="95%">
<tr valign="bottom"><td width="18%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="3%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>First</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Second</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Third</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Fourth</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Total</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="21" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Net sales</div></td>
<td> </td>
<td align="left">$ </td>
<td align="right">430,399</td>
<td> </td>
<td> </td>
<td align="left">$ </td>
<td align="right">490,978</td>
<td> </td>
<td> </td>
<td align="left">$ </td>
<td align="right">536,384</td>
<td> </td>
<td> </td>
<td align="left">$ </td>
<td align="right">555,632</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,013,393</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Gross profit</div></td>
<td> </td>
<td> </td>
<td align="right">44,541</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,471</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55,548</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,362</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">206,922</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Net income</div></td>
<td> </td>
<td> </td>
<td align="right">17,844</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20,714</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,368</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,607</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">89,533</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Earnings per share:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Basic</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.45</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.52</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.60</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.66</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.24</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Diluted</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.44</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.51</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.59</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.65</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2.19</td>
<td> </td></tr></table></div>
<p style="font-size: 10pt;" align="center"> </p></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="95%">
<tr valign="bottom"><td width="20%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="6%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>First</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Second</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Third</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Fourth</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Quarter</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Total</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="21" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Net sales</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">456,109</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">388,895</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">378,643</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">392,975</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,616,622</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Gross profit</div></td>
<td> </td>
<td> </td>
<td align="right">46,550</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,798</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34,605</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,823</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">154,776</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Net income</div></td>
<td> </td>
<td> </td>
<td align="right">17,038</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,028</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,210</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,051</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">46,327</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Earnings per share:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Basic</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.43</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.13</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.23</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.38</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.18</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Diluted</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.43</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.13</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.23</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.38</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.17</td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The annual total amounts may not equal the sum of the quarterly amounts due to rounding. Earnings per share is computed independently for each quarter. </div></div> </div>
6737000
20726000
20899000
2119000
2823000
356035000
445568000
1841622000
1616622000
2013393000
<div>
<div style="margin-top: 12pt; font-family: 'Times New Roman',Times,serif; font-size: 10pt;" align="left"><b>Schedule II – Valuation and Qualifying Accounts</b> </div>
<div style="margin-top: 6pt; font-family: 'Times New Roman',Times,serif; font-size: 10pt;" align="left"> For the fiscal years ended October 2, 2010, October 3, 2009 and September 27, 2008 (in thousands): </div>
<div style="font-family: 'Times New Roman',Times,serif;" align="center">
<table style="width: 847px; height: 385px; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="847">
<tr valign="bottom"><td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Additions</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Balance at</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>charged to</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Additions</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"> </td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>beginning of</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>costs and</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>charged to</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Balance at end</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td nowrap="nowrap" align="center"><b>Descriptions</b></td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>period</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>expenses</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>other accounts</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>Deductions</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>of period</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="21" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Fiscal Year 2010:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Allowance for losses on accounts receivable<br />(deducted from the asset to which it relates)</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,000</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">550</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">150</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,400</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Valuation allowance on deferred income tax assets (deducted from the asset to which it relates)</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,548</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,548</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Fiscal Year 2009:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Allowance for losses on accounts receivable<br />(deducted from the asset to which it relates)</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,500</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">942</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,442</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,000</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Valuation allowance on deferred income tax assets (deducted from the asset to which it relates)</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,607</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">61</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">120</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,548</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Fiscal Year 2008:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Allowance for losses on accounts receivable<br />(deducted from the asset to which it relates)</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">900</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,603</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,500</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Valuation allowance on deferred income tax assets (deducted from the asset to which it relates)</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5,014</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,407</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,607</td></tr></table></div> </div>
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<div>
<div style="margin-top: 12pt; font-family: 'Times New Roman',Times,serif;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>13.</b></td>
<td width="1%"> </td>
<td><b>Reportable Segment, Geographic Information and Major Customers</b></td></tr></table></div>
<div style="margin-top: 6pt; font-family: 'Times New Roman',Times,serif; margin-left: 4%; font-size: 10pt;" align="left"> Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. </div>
<div style="margin-top: 6pt; font-family: 'Times New Roman',Times,serif; margin-left: 4%; font-size: 10pt;" align="left"> The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company's resources on a geographic basis. Net sales for segments are attributed to the region in which the product is manufactured or service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segment's performance is evaluated based upon its operating income (loss). A segment's operating income (loss) includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other costs, interest expense, interest income, other income (expense) and income tax expense (benefit). Corporate and other costs primarily represent corporate selling and administrative expenses, and restructuring and asset impairment costs. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally recorded at amounts that approximate arm's length transactions. The accounting policies for the regions are the same as for the Company taken as a whole. </div>
<div style="margin-top: 6pt; font-family: 'Times New Roman',Times,serif; margin-left: 4%; font-size: 10pt;" align="left"> Information about the Company's four reportable segments in fiscal 2010, 2009 and 2008 were as follows (in thousands): </div>
<div style="font-family: 'Times New Roman',Times,serif;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="94%">
<tr valign="bottom"><td width="54%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="7%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="12" nowrap="nowrap" align="center"><b>Years Ended</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>September 27,</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2008</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td style="border-top: #000000 1px solid;" colspan="12" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Net sales:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">United States</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,150,207</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,007,087</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,267,885</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Asia</div></td>
<td> </td>
<td> </td>
<td align="right">925,391</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">588,129</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">574,079</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">94,513</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77,259</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78,296</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Europe</div></td>
<td> </td>
<td> </td>
<td align="right">72,627</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55,587</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">68,837</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Elimination of inter-segment sales</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(229,345</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(111,440</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(147,475</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,013,393</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,616,622</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,841,622</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Depreciation and amortization:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">United States</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,345</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,230</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,994</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Asia</div></td>
<td> </td>
<td> </td>
<td align="right">18,536</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,154</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,471</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">2,313</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,215</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,791</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Europe</div></td>
<td> </td>
<td> </td>
<td align="right">1,957</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">782</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">836</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Corporate</div></td>
<td> </td>
<td> </td>
<td align="right">6,001</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,087</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,127</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">40,152</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">34,468</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">29,219</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Operating income (loss):</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">United States</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">74,191</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">64,730</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">116,143</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Asia</div></td>
<td> </td>
<td> </td>
<td align="right">114,760</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">63,662</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,535</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">218</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,507</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,693</td>
<td nowrap="nowrap">)</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Europe</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,806</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,352</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,259</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Corporate and other costs</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(87,711</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(73,170</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(77,417</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">99,652</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">53,067</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">102,827</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Capital expenditures:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">United States</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">12,457</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">17,838</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18,078</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Asia</div></td>
<td> </td>
<td> </td>
<td align="right">37,909</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,052</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,556</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">4,026</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,026</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,900</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Europe</div></td>
<td> </td>
<td> </td>
<td align="right">1,884</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,587</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,485</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;" align="left">Corporate</div></td>
<td> </td>
<td> </td>
<td align="right">18,398</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,924</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,310</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">74,674</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57,427</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">54,329</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="60%">
<tr valign="bottom"><td width="36%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="7" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Total assets:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">United States</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">451,284</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">346,272</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Asia</div></td>
<td> </td>
<td> </td>
<td align="right">539,543</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">370,247</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">44,355</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">45,699</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Europe</div></td>
<td> </td>
<td> </td>
<td align="right">84,786</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">86,024</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Corporate</div></td>
<td> </td>
<td> </td>
<td align="right">170,411</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">174,430</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,290,379</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,022,672</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The following enterprise-wide information is provided in accordance with the required segment disclosures. Net sales to unaffiliated customers were based on the Company's location providing product or services (in thousands): </div>
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="75%">
<tr valign="bottom"><td width="35%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="12" nowrap="nowrap" align="center"><b>Years ended</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center"><b>September 27,</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center"><b>2008</b></td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="12" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Net sales:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">United States</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,150,207</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,007,087</td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,267,885</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Malaysia</div></td>
<td> </td>
<td> </td>
<td align="right">788,189</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">512,656</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">486,751</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">94,513</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77,259</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78,296</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">China</div></td>
<td> </td>
<td> </td>
<td align="right">137,202</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75,473</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">87,328</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">United Kingdom</div></td>
<td> </td>
<td> </td>
<td align="right">71,519</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55,577</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">68,837</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Romania</div></td>
<td> </td>
<td> </td>
<td align="right">1,108</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Elimination of inter-segment sales</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(229,345</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(111,440</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(147,475</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,013,393</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,616,622</td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,841,622</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="61%">
<tr valign="bottom"><td width="36%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="7" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Long-lived assets:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Malaysia</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">86,387</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">72,325</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">United States</div></td>
<td> </td>
<td> </td>
<td align="right">59,233</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51,811</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">United Kingdom</div></td>
<td> </td>
<td> </td>
<td align="right">7,248</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,989</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">China</div></td>
<td> </td>
<td> </td>
<td align="right">21,920</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,266</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">8,655</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,940</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Romania</div></td>
<td> </td>
<td> </td>
<td align="right">4,484</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,760</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Corporate</div></td>
<td> </td>
<td> </td>
<td align="right">47,787</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,378</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">235,714</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">197,469</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Long-lived assets as of October 2, 2010 and October 3, 2009 exclude other long-term assets and deferred income tax assets which totaled $28.7 million and $26.8 million, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Restructuring and asset impairment charges are not allocated to reportable segments, as management excludes such charges when assessing the performance of the reportable segments, but rather includes such charges within the "Corporate and other costs" section of the above table of operating income (loss). In fiscal 2010 the Company did not incur any restructuring or asset impairment charges. In fiscal 2009 and 2008, the Company incurred restructuring and asset impairment charges (see Note 10) which were associated with various segments (in thousands): </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="80%">
<tr valign="bottom"><td width="34%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="12" nowrap="nowrap" align="center"><b>Years Ended</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center"><b>September 27,</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td> </td>
<td colspan="2" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td>
<td> </td>
<td colspan="4" nowrap="nowrap" align="center"><b>2008</b></td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="12" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Restructuring and asset impairment charges:</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">United States</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,089</td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,852</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Mexico</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">741</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">267</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Europe</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,748</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Corporate</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">993</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8,571</td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,119</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The percentages of net sales to customers representing 10 percent or more of total net sales for the indicated periods were as follows: </div>
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="80%">
<tr valign="bottom"><td width="34%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 1px solid;" colspan="11" nowrap="nowrap" align="center"><b>Years Ended</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>October 3,</b></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>September 27,</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>2009</b></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>2008</b></td></tr>
<tr style="font-size: 1px;"><td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="11" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Juniper Networks, Inc. ("Juniper")</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">16</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">20</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">20</td>
<td nowrap="nowrap">%</td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> For our significant customers, we generally manufacture products in more than one location. Net sales to Juniper, our largest customer, occur in the United States and Asia reportable segments. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The percentages of accounts receivable from customers representing 10 percent or more of total accounts receivable for the indicated periods were as follows: </div>
<div style="margin-left: 2%;" align="left">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="81%">
<tr valign="bottom"><td width="36%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>October 2,</b></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>October 3,</b></td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>2010</b></td>
<td> </td>
<td colspan="3" nowrap="nowrap" align="center"><b>2009</b></td></tr>
<tr style="font-size: 1px;"><td>`</td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="7" align="left"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">Juniper</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">17</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">15</td>
<td nowrap="nowrap">%</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 30px;">General Electric Company</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">10</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">*</td>
<td> </td></tr></table></div>
<div align="left">
<div style="margin-top: 16pt; width: 18%; margin-left: 4%; font-size: 3pt; border-top: #000000 1px solid;"> </div></div>
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr><td width="3%"> </td>
<td width="1%"> </td>
<td width="96%"> </td></tr>
<tr valign="top"><td nowrap="nowrap" align="left"> </td>
<td> </td>
<td>*Represents less than 10 percent of total accounts receivable</td></tr></table>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> No other customers represented ten percent or more of the Company's total net sales or total trade receivable balances as of October 2, 2010 and October 3, 2009. </div></div></div></div></div> </div>
100815000
93138000
107270000
8737000
9421000
9536000
<div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>1.</b></td>
<td width="1%"> </td>
<td><b>Description of Business and Significant Accounting Policies</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Description of Business: </i>Plexus Corp. and its subsidiaries (together "Plexus", the "Company" or "we") participate in the Electronic Manufacturing Services ("EMS") industry. We deliver optimized Product Realization solutions through a unique Product Realization Value Stream service model. This customer focused service model seamlessly integrates innovative product design, customized supply chain solutions, uniquely configured "focused factory" manufacturing, global end-market fulfillment and after-market services to deliver comprehensive end-to-end solutions for customers. We provide these services to original equipment manufacturers ("OEMs") and other technology companies in the wireline/networking, wireless infrastructure, medical, industrial/commercial, and defense/security/aerospace market sectors. We provide advanced product design, manufacturing and testing services to our customers with a focus on the mid-to-lower volume, higher complexity segment of the EMS market. Our customers' products typically require exceptional production and supply-chain flexibility, necessitating an optimized demand-pull-based manufacturing and supply chain solution across an integrated global platform. Many of our customers' products require complex configuration management and direct order fulfillment to their customers across the globe. In such cases we provide global logistics management and after-market service and repair. Our customers' products may have stringent requirements for quality, reliability and regulatory compliance. We offer our customers the ability to outsource all phases of product realization, including product specifications; development, design and design validation; regulatory compliance support; prototyping and new product introduction; manufacturing test equipment development; materials sourcing, procurement and supply-chain management; product assembly/manufacturing, configuration and test; order fulfillment, logistics and service/repair. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Consolidation Principles and Basis of Presentation: </i>The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and include the accounts of Plexus Corp. and its subsidiaries. All significant intercompany transactions have been eliminated. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The Company's fiscal year ends on the Saturday closest to September 30. The Company also uses a "4-4-5" weekly accounting system for the interim periods in each quarter. Each quarter, therefore, ends on a Saturday at the end of the 4-4-5 period. Periodically, an additional week must be added to the fiscal year to re-align with the Saturday closest to September 30. Fiscal 2009 included this additional week and the fiscal year ended on October 3, 2009. Therefore fiscal 2009 included 371 days. The additional week was added to the first fiscal quarter, ended January 3, 2009, which included 98 days. The accounting years for fiscal 2010 and 2008 each included 364 days. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In preparing the accompanying consolidated financial statements, the Company has reviewed, as deemed necessary by the Company's management, other events and transactions occurring through the date the financial statements are issued. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Cash Equivalents and Short-Term Investments: </i>Cash equivalents are highly liquid investments purchased with an original maturity of less than three months. Short-term investments include investment-grade short-term debt instruments with original maturities greater than three months. Short-term investments are generally comprised of securities with contractual maturities greater than one year but with optional or early redemption provisions or rate reset provisions within one year. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Investments in debt securities are classified as "available-for-sale." Such investments are recorded at fair value as determined from quoted market prices, and the cost of securities sold is determined on the specific identification method. If material, unrealized gains or losses are reported as a component of comprehensive income or loss, net of the related income tax effect. For fiscal 2010, 2009 and 2008, unrealized or realized gains and losses were not material. </div></div>
<p>
</p>
<p> </p>
<p> </p>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> As of October 2, 2010 and October 3, 2009, cash and cash equivalents included the following securities (in thousands): </div>
<div align="left">
<table style="margin-left: 10%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="70%">
<tr valign="bottom"><td width="44%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td></tr>
<tr><td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Cash</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">121,976</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,129</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Money market funds and other</div></td>
<td> </td>
<td> </td>
<td align="right">66,268</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">207,253</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">U.S. corporate and bank debt</div></td>
<td> </td>
<td> </td>
<td align="right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,000</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td align="left">$</td>
<td align="right">188,244</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">258,382</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Inventories: </i>Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) method. Valuing inventories at the lower of cost or market requires the use of estimates and judgment. Customers may cancel their orders, change production quantities or delay production for a number of reasons that are beyond the Company's control. Any of these, or certain additional actions, could impact the valuation of inventory. Any actions taken by the Company's customers that could impact the value of its inventory are considered when determining the lower of cost or market valuations. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Per contractual terms, customer deposits are received by the Company to offset obsolete and excess inventory risks. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Property, Plant and Equipment and Depreciation: </i>These assets are stated at cost. Depreciation, determined on the straight-line method, is based on lives assigned to the major classes of depreciable assets as follows: </div>
<div align="center">
<table style="width: 381px; height: 84px; margin-left: 15%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="381">
<tr valign="bottom"><td width="35%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="8%"> </td>
<td width="1%"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Buildings and improvements</div></td>
<td> </td>
<td colspan="3" align="left">15-50 years</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Machinery and equipment</div></td>
<td> </td>
<td colspan="3" align="left"> 3-10 years</td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Computer hardware and software</div></td>
<td> </td>
<td colspan="3" align="left"> 2-10 years</td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Certain facilities and equipment held under capital leases are classified as property, plant and equipment and amortized using the straight-line method over the lease terms and the related obligations are recorded as liabilities. Lease amortization is included in depreciation expense (see Note 3) and the financing component of the lease payments is classified as interest expense. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> For the capitalization of software costs, the Company capitalizes significant costs incurred in the acquisition or development of software for internal use, including the costs of the software, consultants as well as payroll and payroll-related costs for employees directly involved in developing internal use computer software once the final selection of the software is made. Costs incurred prior to the final selection of software and costs not qualifying for capitalization are expensed as incurred. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Expenditures for maintenance and repairs are expensed as incurred. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Goodwill and Other Intangible Assets</i>: During the second quarter of fiscal 2009, the Company recorded a goodwill impairment charge of $5.7 million, writing off the entire carrying value of its goodwill related to its Kelso, Scotland ("Kelso") facility. The impairment charge was driven by macroeconomic conditions that contributed to an overall reduction in demand for the Company's offerings from the Kelso facility. These conditions led to an "interim triggering event", leading management to perform an interim goodwill impairment test. This test resulted in the determination that the carrying value of the goodwill relating to Kelso, the Company's sole remaining goodwill asset, was fully impaired and therefore an impairment charge of $5.7 million was recorded. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Should the Company have goodwill and intangible assets with indefinite useful lives in the future, the Company would test those assets for impairment at least annually, and recognize any related losses when incurred. Recoverability of goodwill would be measured at the reporting unit level. The Company would measure the recoverability of goodwill under the annual impairment test by comparing the reporting unit's carrying amount, including goodwill, to the reporting unit's estimated fair market value, which would be primarily estimated using the present value of expected future cash flows, although market valuations may also be employed. If the carrying amount of the reporting unit exceeds its fair value, goodwill would be considered impaired and a second test performed to measure the amount of impairment. Circumstances that may lead to impairment of goodwill include, but are not limited to, the loss of a significant customer or customers and unforeseen reductions in customer demand, future operating performance or industry demand. </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> For the years ended October 2, 2010 and October 3, 2009 changes in the carrying amount of goodwill for the European reportable segment were as follows (in thousands): </div>
<div align="left">
<table style="margin-left: 12%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="58%">
<tr valign="bottom"><td width="46%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 9pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u> <b>Europe</b> </u></td>
<td> </td></tr>
<tr style="font-size: 3pt;" valign="bottom"><td colspan="5">
<p align="left"> </p></td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"><b>Balance as of September 27, 2008</b></div></td>
<td> </td>
<td> </td>
<td align="right">7,275</td>
<td> </td></tr>
<tr style="font-size: 6pt;" valign="bottom"><td colspan="5"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Foreign currency translation adjustment</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,527</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 6pt;" valign="bottom"><td colspan="5"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Goodwill impairment</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,748</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;"> </td></tr>
<tr style="font-size: 6pt;" valign="bottom"><td colspan="5"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left"><b>Balance as of October 3, 2009</b></div></td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 3px double;"> </td></tr>
<tr style="font-size: 6pt;" valign="bottom"><td colspan="5"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"><b>Balance as of October 2, 2010</b></div></td>
<td> </td>
<td align="left">$</td>
<td align="right">-</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 3px double;"> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Impairment of Long-Lived Assets: </i>The Company reviews property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of property, plant and equipment is measured by comparing its carrying value to the projected cash flows the property, plant and equipment are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value of the property exceeds its fair market value. The impairment analysis is based on significant assumptions of future results made by management, including sales and cash flow projections. Circumstances that may lead to impairment of property, plant and equipment include reduced expectations for future performance or industry demand and possible further restructurings. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Revenue Recognition: </i>Net sales from manufacturing services are recognized when the product has been shipped, the risk of ownership has transferred to the customer, the price to the buyer is fixed or determinable, and recoverability is reasonably assured. This point depends on contractual terms and generally occurs upon shipment of the goods from Plexus. Generally, there are no formal customer acceptance requirements or further obligations related to manufacturing services; if such requirements or obligations exist, then a sale is recognized at the time when such requirements are completed and such obligations are fulfilled. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Net sales from engineering design and development services, which are generally performed under contracts with a duration of twelve months or less, are typically recognized as costs are incurred utilizing the proportional performance model. Progress towards completion of product design and development contracts is based on units of work for labor content and costs incurred for component content. The completed performance model is used if certain customer acceptance criteria exist. Any losses are recognized when anticipated. Net sales from engineering design and development services were less than five percent of total sales in fiscal 2010, 2009 and 2008. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Sales are recorded net of estimated returns of manufactured products based on management's analysis of historical returns, current economic trends and changes in customer demand. Net sales also include amounts billed to customers for shipping and handling. The corresponding shipping and handling costs are included in cost of sales. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Restructuring Charges: </i>From time to time, the Company has recorded restructuring charges in response to the reduction in its sales levels and reduced capacity utilization. These restructuring charges included employee severance and benefit costs, costs related to plant closures, including leased facilities that will be abandoned (and subleased, as applicable), and impairment of equipment. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The timing and related recognition of recording severance and benefit costs that are not presumed to be an ongoing benefit depend on whether employees are required to render service until they are terminated in order to receive the termination benefits and, if so, whether employees will be retained to render service beyond a minimum retention period. The Company concluded that it had a substantive severance plan based upon past severance practices; therefore, certain severance and benefit costs were recorded as a liability due to the fact that the severance and benefit costs arose from an existing condition or situation and the payment was both probable and reasonably estimated. </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> For leased facilities that will be abandoned and subleased, a liability is recognized and measured at fair value for the future remaining lease payments subsequent to abandonment, less any estimated sublease income that could be reasonably obtained for the property. For contract termination costs, including costs that will continue to be incurred under a contract for its remaining term without economic benefit to the Company, a liability for future remaining payments under the contract is recognized and measured at its fair value. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The recognition of restructuring costs requires that the Company make certain judgments and estimates regarding the nature, timing and amount of cost associated with the planned exit activity. If actual results in exiting these facilities differ from the Company's estimates and assumptions, the Company may be required to revise the estimates of future liabilities, which could result in recording additional restructuring costs or the reduction of liabilities already recorded. At the end of each reporting period, the Company evaluates the remaining accrued balances to ensure that no excess accruals are retained, no additional accruals are required and the utilization of the provisions are for their intended purpose in accordance with developed exit plans. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Income Taxes: </i>Deferred income taxes are provided for the difference between the financial statement balance of assets and liabilities and their respective tax basis. The Company records a valuation allowance against deferred income tax assets when management believes it is more likely than not that some portion or all of the deferred income tax assets will not be realized (see Note 6). Realization of deferred income tax assets is dependent on the Company's ability to generate future taxable income. Recognition of deferred income tax assets is evaluated and tax reserves are recorded to address potential exposures related to income tax positions taken by the Company. These reserves are based on the assumptions and past experiences of the Company and provide for the uncertainty surrounding the application of statutes, rules, regulations, and interpretations to its income tax filings. It is possible that the actual costs or benefits relating to these matters may be materially more or less than the amount the Company estimated. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Foreign Currency Translation: </i>We translate assets and liabilities of subsidiaries operating outside of the U.S. with a functional currency other than the U.S. Dollar into U.S. Dollars using exchange rates in effect at year-end. We translate net sales, expenses and cash flows at the average monthly exchange rates during the respective periods. Adjustments resulting from translation of the financial statements are recorded as a component of "Accumulated other comprehensive income". Exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved and remeasurement adjustments for foreign operations where the U.S. dollar is the functional currency are included in our Statements of Operations as a component of miscellaneous other income (expense). Exchange (losses) gains on foreign currency transactions were $(1.5) million, $0.7 million and $(1.7) million for the fiscal years ended October 2, 2010, October 3, 2009 and September 27, 2008, respectively. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Derivatives</i>: The Company periodically enters into derivative contracts such as foreign currency forwards and interest rate swaps, which are designated as cash-flow hedges. All derivatives are recognized on the balance sheet at their estimated fair value. On the date a derivative contract is entered into, the Company designates the derivative as a hedge of a recognized asset or liability (a "fair value" hedge), a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (a "cash flow" hedge), or a hedge of the net investment in a foreign operation. The Company does not enter into derivatives for speculative purposes. Changes in the fair value of a derivative that qualify as a fair value hedge are recorded in earnings along with the gain or loss on the hedged asset or liability. Changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded in "Accumulated other comprehensive income", until earnings are affected by the variability of cash flows. Changes in the fair value of a derivative used to hedge the net investment in a foreign operation are recorded in the "Accumulated other comprehensive income" accounts within shareholders' equity. Our interest rate swaps and forward contracts are treated as cash flow hedges and, therefore, $(0.1) million, $(3.7) million and $(1.7) million were recorded in "Accumulated other comprehensive income" for fiscal 2010, 2009 and 2008, respectively. </div></div>
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<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Earnings Per Share: </i>The computation of basic earnings per common share is based upon the weighted average number of common shares outstanding and net income. The computation of diluted earnings per common share reflects additional dilution from stock options and restricted stock, excluding any with an antidilutive effect. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Stock-based Compensation: </i>The Company measures all share-based payments to employees, including grants of employee stock options, at fair value and expenses them in the Consolidated Statements of Operations over the service period (generally the vesting period) of the grant. The Company transitioned to this method using the modified prospective application, under which compensation expense is only recognized in the Consolidated Statements of Operations beginning with the first period of adoption and continuing to be expensed thereafter. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Comprehensive Income: </i>The Company follows the established standards for reporting comprehensive income, which is defined as the changes in equity of an enterprise except those resulting from stockholder transactions. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Accumulated other comprehensive income consists of the following as of October 2, 2010 and October 3, 2009 (in thousands): </div>
<div align="left">
<table style="margin-left: 6%; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="90%">
<tr valign="bottom"><td width="67%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td></tr>
<tr style="font-size: 10pt;" valign="bottom"><td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2010</b></u></td>
<td> </td>
<td> </td>
<td style="border-bottom: #000000 0px solid;" colspan="2" nowrap="nowrap" align="center"><u><b>2009</b></u></td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Foreign currency translation adjustment</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">9,789</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,577</td>
<td> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;" align="left">Cumulative change in fair market value of derivative instruments, net of tax</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,924</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,897</td>
<td nowrap="nowrap">)</td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;"> </td>
<td> </td>
<td style="border-top: #000000 1px solid;" colspan="2" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 1px solid;"> </td></tr>
<tr valign="bottom"><td>
<div style="text-indent: -15px; margin-left: 15px;">Accumulated other comprehensive income</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,865</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,680</td>
<td> </td></tr>
<tr style="font-size: 1px;"><td>
<div style="text-indent: -15px; margin-left: 15px;"> </div></td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 3px double;"> </td>
<td> </td>
<td style="border-top: #000000 3px double;" colspan="2" nowrap="nowrap" align="right"> </td>
<td style="border-top: #000000 3px double;"> </td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> The change in fair market value of derivative instruments, net of tax adjustment that is recorded to "Accumulated other comprehensive income" is more fully explained in Note 5 — Derivatives. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Conditional Asset Retirement Obligations: </i>We recognize a liability for the fair value of a conditional asset retirement obligation if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. The liability is adjusted for any additions or deletions of related property, plant and equipment. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Use of Estimates: </i>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Fair Value of Financial Instruments: </i>Accounts payable and accrued liabilities were reflected in the consolidated financial statements at cost because of the short-term duration of these instruments. Accounts receivable were reflected at net realizable value based on anticipated losses due to potentially uncollectible balances. Anticipated losses were based on management's analysis of historical losses and changes in customers' credit status. The fair value of capital lease obligations was approximately $18.3 million and $23.0 million as of October 2, 2010 and October 3, 2009, respectively. The fair value of the Company's term loan debt was $105.2 million and $107.8 million as of October 2, 2010 and October 3, 2009, respectively. The fair value of the Company's derivatives are disclosed in Note 5. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>Business and Credit Concentrations: </i>Financial instruments that potentially subject the Company to concentrations of credit risk consisted of cash, cash equivalents, short-term investments, trade accounts receivable and derivative instruments, specifically related to counterparties. In accordance with the Company's investment policy, the Company's cash, cash equivalents, short-term investments and derivative instruments were placed with recognized financial institutions. The Company's investment policy limits the amount of credit exposure in any one issue and the maturity date of the investment securities that typically comprise investment grade short-term debt instruments. Concentrations of credit risk in accounts receivable resulting from sales to major customers are discussed in Note 13. The Company, at times, requires advanced cash deposits for services performed. The Company also closely monitors extensions of credit. </div></div>
<div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> <i>New Accounting Pronouncements: </i>In January 2010, the Financial Accounting Standards Board ("FASB") issued new accounting guidance for fair value measurements and disclosures, which requires additional disclosure for transfers in and out of level one and level two fair value measurements as well as activity in level three fair value measurements. The new guidance requests that fair value measurement disclosures are provided for each class of assets and liabilities including valuation techniques and inputs to the fair value model. The Company adopted this guidance during the second quarter of fiscal 2010. The principal impact to the Company was to require the expansion of its disclosure regarding its derivative investments (see Note 5). </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In October 2009, the FASB issued new accounting guidance for Multiple-Deliverable Revenue Arrangements, which establishes a selling price hierarchy for determining the selling price of a deliverable, replaces the term "fair value" in the revenue allocation guidance with "selling price," eliminates the residual method of allocation by requiring that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method and requires that a vendor determine its best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a stand-alone basis. This guidance is effective for financial statements issued for fiscal years beginning after June 15, 2010. The Company is currently assessing the impact of this new guidance on the consolidated financial statements. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities ("VIEs"). The elimination of the concept of a qualifying special-purpose entity ("QSPE") removes the exception from applying the consolidation guidance within this amendment. This amendment requires an enterprise to perform a qualitative analysis when determining whether or not it must consolidate a VIE. The amendment also requires an enterprise to continuously reassess whether it must consolidate a VIE. Additionally, the amendment requires enhanced disclosures about an enterprise's involvement with VIEs and any significant change in risk exposure due to that involvement, as well as how its involvement with VIEs impacts the enterprise's financial statements. Finally, an enterprise will be required to disclose significant judgments and assumptions used to determine whether or not to consolidate a VIE. This amendment is effective for financial statements issued for fiscal years beginning after November 15, 2009. Adoption is not expected to have a material impact on the Company's consolidated results of operations, financial position and cash flows. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In June 2008, the FASB issued new accounting guidance that specifies that unvested share-based awards containing non-forfeitable rights to dividends or dividend equivalents are participating securities and should be included in the computation of earnings per share pursuant to the two-class method. The Company adopted this guidance beginning October 4, 2009, and the adoption did not have a material effect on the weighted average shares outstanding or earnings per share amounts. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In March 2008, the FASB ratified accounting guidance for lessee maintenance deposits under lease arrangements. The guidance requires that all nonrefundable maintenance deposits be accounted for as a deposit, and expensed or capitalized when underlying maintenance is performed. If it is determined that an amount on deposit is not probable of being used to fund future maintenance, it is to be recognized as expense at the time such determination is made. The Company adopted this guidance beginning October 4, 2009, and the adoption did not have a material effect on the Company's financial position, results of operations, or cash flows. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In September 2006, the FASB issued new accounting guidance that defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It also establishes a fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability. We adopted this guidance for financial assets and liabilities effective September 28, 2008, and for non-financial assets and liabilities effective October 4, 2009. Non-financial assets and liabilities subject to this new guidance primarily include goodwill and indefinite lived intangible assets measured at fair value for impairment assessments, long-lived assets measured at fair value for impairment assessments, and non-financial assets and liabilities measured at fair value in business combinations. The adoption of the new accounting guidance effective October 4, 2009, did not have a material effect on the Company' financial position, results of operations, or cash flows.</div></div> </div>
573265000
11612000
336603000
464000
224586000
473945000
10774000
353105000
468000
309708000
-200110000
527446000
4680000
366371000
470000
356035000
-200110000
651855000
6865000
399054000
478000
445568000
-200110000
<div> <div style="font-family: 'Times New Roman',Times,serif;">
<div style="margin-top: 12pt;">
<table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td width="3%" nowrap="nowrap" align="left"><b>7.</b></td>
<td width="1%"> </td>
<td><b>Shareholders' Equity</b></td></tr></table></div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> In July 2008, the Company completed the $200 million share repurchase program with a total purchase of 7.4 million shares at a volume-weighted average price of $26.87 per share. </div>
<div style="margin-top: 6pt; margin-left: 4%; font-size: 10pt;" align="left"> Pursuant to the Company's Rights Agreement, each preferred share purchase right (a "Right") entitles the registered holder to purchase from the Company one one-hundredth of a share of the Company's Series B Junior Participating Preferred Stock, $0.01 par value per share ("Preferred Share"), at a price of $125.00 per one one-hundredth of a Preferred Share, subject to adjustment. The Rights are exercisable only if a person or group acquires beneficial ownership of more than 20% of the Company's outstanding common stock or commences, or announces an intention to make, a tender offer or exchange offer that would result in such person or group acquiring the beneficial ownership of more than 20% of the Company's common stock. The Rights expire on August 28, 2018, subject to extension. </div></div> </div>
7000
363000
363000
222000
855000
177000
177000
7592000
7588000
4000
3847000
3845000
2000
23155000
23147000
8000
7446000
7446000
-7446000
200110000
200110000
-200110000
-200110000
43850000
39654000
40831000
43340000
39411000
40051000