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Income Taxes | 12 Months Ended
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Sep. 30, 2023
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:
|  | 2023 |  | 2022 |  | 2021
Earnings before income taxes: |  |  |  |  |  |
Domestic |  | $ | 136,080 |  |  | $ | 151,870 |  |  | $ | 141,665 |
Foreign |  | 79,972 |  |  | 51,109 |  |  | 62,109 |
Total |  | $ | 216,052 |  |  | $ | 202,979 |  |  | $ | 203,774 |
Federal statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in income taxes resulting from: |  |  |  |  |  |
Impacts of Tax Act |  | (0.8) | % |  | (0.4) | % |  | (1.2) | %
Revaluation of deferred taxes |  | — | % |  | — | % |  | 1.6 | %
Withholding taxes |  | 0.4 | % |  | 0.6 | % |  | 0.4 | %
Reversal of indefinite reinvestment assertion |  | 0.5 | % |  | — | % |  | 0.2 | %
R&D and foreign tax credits |  | (6.4) | % |  | (5.4) | % |  | (4.6) | %
Divestiture impacts |  | — | % |  | 2.3 | % |  | — | %
Foreign tax rates |  | 6.8 | % |  | 4.5 | % |  | 4.4 | %
Equity-based compensation |  | (0.3) | % |  | (0.2) | % |  | (0.1) | %
Change in valuation allowance for deferred taxes |  | (0.8) | % |  | (2.3) | % |  | (1.6) | %
State taxes, net of federal benefit |  | 0.1 | % |  | 1.9 | % |  | 2.1 | %
Other |  | 0.3 | % |  | 1.6 | % |  | 0.6 | %
Effective income tax rate |  | 20.8 | % |  | 23.6 | % |  | 22.8 | %
Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost included in tax expense the year incurred. As such, we don't measure the impact of the GILTI in our determination of deferred taxes. In 2023, we recorded $1,578 of GILTI tax and received a benefit of $3,159 related to the Foreign-Derived Intangible Income deduction. In 2023, we also recorded a tax benefit for provision to return adjustments of $2,338 primarily related to domestic research and development tax credits. In addition, we recorded a current year expense of $2,201 for a total accrual of $10,535 for taxes on undistributed earnings not considered permanently reinvested. During 2023, 2022 and 2021, we repatriated available unremitted earnings from various foreign subsidiaries that were previously taxed under the Tax Act of $39,156, $37,986 and $41,987, respectively. We no longer indefinitely reinvest unremitted earnings and therefore we record a liability related to the remaining unremitted earnings generated by the foreign subsidiaries in the current year. 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:
|  | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |  |
Federal |  | $ | 41,714 |  |  | $ | 6,270 |  |  | $ | 9,907 |
Foreign |  | 32,269 |  |  | 26,730 |  |  | 23,801 |
State |  | 6,602 |  |  | 3,063 |  |  | 4,684 |
Total current |  | 80,585 |  |  | 36,063 |  |  | 38,392 |
Deferred: |  |  |  |  |  |
Federal |  | (30,756) |  |  | 8,076 |  |  | 4,625 |
Foreign |  | 629 |  |  | 1,742 |  |  | 2,898 |
State |  | (5,404) |  |  | 1,921 |  |  | 639 |
Total deferred |  | (35,531) |  |  | 11,739 |  |  | 8,162 |
Income taxes |  | $ | 45,054 |  |  | $ | 47,802 |  |  | $ | 46,554 |
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:
|  | September 30, 2023 |  | October 1, 2022
Deferred tax assets: |  |  |  |
Benefit accruals |  | $ | 59,738 |  |  | $ | 65,863 |
Inventory reserves |  | 28,301 |  |  | 30,053 |
Tax benefit carryforwards |  | 7,897 |  |  | 10,885 |
Contract reserves not currently deductible |  | 10,467 |  |  | 10,447 |
Lease liability |  | 16,342 |  |  | 18,473 |
Research and development |  | 41,118 |  |  | — |
Other accrued expenses |  | 6,212 |  |  | 14,824 |
Total gross deferred tax assets |  | 170,075 |  |  | 150,545 |
Less valuation allowance |  | (6,430) |  |  | (8,650) |
Total net deferred tax assets |  | $ | 163,645 |  |  | $ | 141,895 |
Deferred tax liabilities: |  |  |  |
Differences in bases and depreciation of property, plant and equipment |  | $ | 170,284 |  |  | $ | 167,990 |
Pension |  | 22,238 |  |  | 28,802 |
Total gross deferred tax liabilities |  | 192,522 |  |  | 196,792 |
Net deferred tax liabilities |  | $ | (28,877) |  |  | $ | (54,897) |
Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets. At September 30, 2023, foreign tax loss carryforwards total $1,452 with expirations ranging from 2024 to 2028. We have $895 of federal tax credit carryforward with expirations of 2031 and 2033 and $6,285 state tax credit carryforward with expirations of 2027 to indefinite life. The change in the valuation allowance relates to tax benefit carryforwards that were utilized or expired during 2023 and credits that were generated in 2023 but will likely not be used before expiration. Effective for tax year ended September 30, 2023, the Tax Cuts and Jobs Act (TCJA) of 2017 requires taxpayers to capitalize and amortize research and development costs pursuant to IRC Section 174. Domestic expenses are amortized over a 5 year period and foreign over a 15 year period. As a result of the act, a deferred tax asset of $41,118 was established in 2023. We record unrecognized tax benefits as liabilities and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Further, we record interest and penalties related to unrecognized tax benefits in income tax expense. In 2023, we recorded a $1,072 benefit for the reversal of the uncertain tax position as a result of concluding the benefit is likely to be realized. In 2022, we expensed interest and penalties of $43 related to $848 of unrecognized tax benefits. 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 2020. 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.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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