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Income Taxes | 12 Months Ended
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Oct. 02, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The reconciliation of the provision for income taxes to the amount computed by applying the U.S. federal statutory tax rate to earnings before income taxes is as follows:
|  | 2021 |  | 2020 |  | 2019
Earnings before income taxes: |  |  |  |  |  |
Domestic |  | $ | 141,665 |  |  | $ | 1,126 |  |  | $ | 136,308 |
Foreign |  | 62,109 |  |  | 4,291 |  |  | 90,644 |
Total |  | $ | 203,774 |  |  | $ | 5,417 |  |  | $ | 226,952 |
Federal statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |
Impacts of Tax Act |  | (1.2) | % |  | (96.4) | % |  | 0.4 | %
Revaluation of deferred taxes |  | 1.6 | % |  | (21.6) | % |  | (0.2) | %
Withholding taxes |  | 0.4 | % |  | 27.5 | % |  | 1.0 | %
Reversal of indefinite reinvestment assertion |  | 0.2 | % |  | (2.9) | % |  | 0.6 | %
R&D and foreign tax credits |  | (4.6) | % |  | (102.8) | % |  | (2.1) | %
Foreign tax rates |  | 4.4 | % |  | 76.0 | % |  | 2.3 | %
Equity-based compensation |  | (0.1) | % |  | (6.5) | % |  | (0.7) | %
Change in valuation allowance for deferred taxes |  | (1.6) | % |  | 21.1 | % |  | (0.7) | %
State taxes, net of federal benefit |  | 2.1 | % |  | (1.9) | % |  | 1.4 | %
Other |  | 0.6 | % |  | 16.6 | % |  | 0.1 | %
Effective income tax rate |  | 22.8 | % |  | (69.9) | % |  | 23.1 | %
Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost included in tax expenses the year incurred. As such, we will not be measuring the impact of the GILTI in our determination of deferred taxes. In 2021, we recorded $101 of GILTI tax and received a benefit of $2,053 related to the Foreign-Derived Intangible Income deduction. In 2021, we also recorded a tax benefit for provision to return adjustments of $3,057 related to domestic research and development tax credits and the adoption of the GILTI high tax election. In addition, we recorded a current year expense of $1,446 for a total accrual of $10,043 for taxes on undistributed earnings not considered permanently reinvested. During 2021, 2020 and 2019, we repatriated available unremitted earnings from various foreign subsidiaries that were previously taxed under the Tax Act of $41,987, $23,001, $103,227, respectively. We do not indefinitely reinvest unremitted earnings and therefore we maintain a liability related to the remaining unremitted earnings generated by the foreign subsidiaries, which primarily relates to foreign withholding taxes. We continue to be permanently invested in outside basis differences other than the unremitted earnings as we have no plans to liquidate or sell those foreign subsidiaries. The components of income taxes are as follows:
|  | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |  |
Federal |  | $ | 9,907 |  |  | $ | 14,789 |  |  | $ | 23,302 |
Foreign |  | 23,801 |  |  | 18,997 |  |  | 29,460 |
State |  | 4,684 |  |  | 3,271 |  |  | 4,240 |
Total current |  | 38,392 |  |  | 37,057 |  |  | 57,002 |
Deferred: |  |  |  |  |  |
Federal |  | 4,625 |  |  | (35,603) |  |  | (5,666) |
Foreign |  | 2,898 |  |  | (1,843) |  |  | 1,413 |
State |  | 639 |  |  | (3,399) |  |  | (345) |
Total deferred |  | 8,162 |  |  | (40,845) |  |  | (4,598) |
Income taxes (benefit) |  | $ | 46,554 |  |  | $ | (3,788) |  |  | $ | 52,404 |
Realization of deferred tax assets is dependent, in part, upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income, tax planning strategies, carryback opportunities and reversal of existing deferred tax liabilities in making its assessment of the recoverability of deferred tax assets. The tax effects of temporary differences that generated deferred tax assets and liabilities are as follows:
|  | October 2, 2021 |  | October 3, 2020
Deferred tax assets: |  |  |  |
Benefit accruals |  | $ | 68,657 |  |  | $ | 78,703 |
Inventory reserves |  | 31,900 |  |  | 31,571 |
Tax benefit carryforwards |  | 15,434 |  |  | 14,146 |
Contract reserves not currently deductible |  | 13,294 |  |  | 16,418 |
Lease liability |  | 16,997 |  |  | 17,622 |
Other accrued expenses |  | 10,983 |  |  | 12,510 |
Total gross deferred tax assets |  | 157,265 |  |  | 170,970 |
Less valuation allowance |  | (13,896) |  |  | (14,784) |
Total net deferred tax assets |  | $ | 143,369 |  |  | $ | 156,186 |
Deferred tax liabilities: |  |  |  |
Differences in bases and depreciation of property, plant and equipment |  | $ | 164,581 |  |  | $ | 152,926 |
Pension |  | 25,661 |  |  | 24,810 |
Total gross deferred tax liabilities |  | 190,242 |  |  | 177,736 |
Net deferred tax assets (liabilities) |  | $ | (46,873) |  |  | $ | (21,550) |
Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets. At October 2, 2021 foreign tax benefit carryforwards total $27,840 with expirations ranging from 2023 to indefinite life. Domestic benefit carryforwards include capital loss of $5,000 expiring in 2024 and state tax losses of $579 expiring in 2022. We also have $1,391 and $6,673 of federal and state tax credit carryforward with expirations from 2030 to 2031 and 2027 to indefinite life, respectively. The change in the valuation allowance relates to tax benefit carryforwards that were utilized during 2021. We have no material unrecognized tax benefits which, if ultimately recognized, will reduce our annual effective tax rate. We are subject to income taxes in the U.S. and in various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require the application of significant judgment. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities in significant jurisdictions for tax years before 2019. The statute of limitations in several jurisdictions will expire in the next twelve months and we will have no unrecognized tax benefits recognized if the statute of limitations expires without the relevant taxing authority examining the applicable returns. During 2021, due to passage of time, we concluded that it would be appropriate to relieve the $1,131 accrual of interest and penalties related to historical unrecognized tax benefits in income tax expense.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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