
	2020		2019		2018
Current:
Federal	$	13,735	$	11,074	$	12,390
State	3,348		2,752		4,482
Foreign	1,109		1,422		1,678
Deferred	277		(154)		8,887
	$	18,469	$	15,094	$	27,437

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at the end of the respective years are presented below:


	2020		2019
Deferred tax assets:
Inventories	$	1,346	$	1,478
Compensation	7,726		6,890
Tax credit carryforwards	3,235		3,554
Net operating loss carryforwards	4,427		4,073
Other	7,154		7,103
Total gross deferred tax assets	23,888		23,098
Less valuation allowance	6,524		5,964
Deferred tax assets	17,364		17,134
Deferred tax liabilities:
Goodwill and other intangibles	2,080		1,988
Depreciation and amortization	5,735		5,143
Foreign statutory reserves	288		192
Net deferred tax assets	$	9,261	$	9,811

The net deferred tax assets recorded in the accompanying Consolidated Balance Sheets as of the years ended October 2, 2020 and September 27, 2019 were as follows:


	2020		2019
Non-current assets	$	10,679	$	11,449
Non-current liabilities	1,418		1,638
Net deferred tax assets	$	9,261	$	9,811

The significant differences between the statutory federal tax rate and the effective income tax rates for the Company for the respective years shown below were as follows:


	2020		2019		2018
Statutory U.S. federal income tax rate	21.0	%	21.0	%	24.5	%	*
State income tax, net of federal benefit	4.6	%	4.3	%	4.1	%
Uncertain tax positions, net of settlements	(0.1)	%	(0.5)	%	2.2	%
Foreign-derived intangible income ("FDII") deduction	(1.1)	%	(0.9)	%	—	%
Section 199 manufacturer's deduction	—	%	—	%	(2.2)	%
Taxes related to foreign income, net of credits	—	%	0.5	%	0.1	%
Compensation	0.7	%	(0.7)	%	1.5	%
Tax rate or law change	—	%	(0.2)	%	12.3	%
Other	—	%	(0.8)	%	(2.2)	%
	25.1	%	22.7	%	40.3	%

* The federal statutory rate is a blended rate which reflects 35% through December 31, 2017 and the lower rate of 21.0% beginning on January 1, 2018 due to tax reform.

The Tax Act included a new provision designed to tax global intangible low taxed income (“GILTI”) starting in fiscal 2019. The Company elected to record the tax effects of the GILTI provision as a period expense in the applicable tax year.


	State		Foreign		Total
Year of expiration
2021-2025	$	1,854	$	4,423	$	6,277
2026-2030	2,618		3,972		6,590
2031-2035	7,884		—		7,884
2036-2040	760		—		760
Indefinite	—		6,136		6,136
Total	$	13,116	$	14,531	$	27,647


	State		Federal		Total
Year of expiration
2021-2025	$	1,699	$	—	$	1,699
2026-2030	1,058		—		1,058
2031-2035	478		—		478


Total	$	3,235	$	—	$	3,235


	2020		2019
Beginning balance	$	7,931	$	8,829
Gross increases - tax positions in prior period	82		63

Gross increases - tax positions in current period	909		855
Settlements	—		(463)
Lapse of statute of limitations	(1,550)		(1,353)
Ending balance	$	7,372	$	7,931

The total accrued interest and penalties with respect to income taxes was approximately $1,947 and $1,942 for the years ended October 2, 2020 and September 27, 2019, respectively. The Company’s liability for unrecognized tax benefits as of October 2, 2020 was $7,372, and if recognized, $5,371 of such amount would have an effective tax rate impact.

In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Interest and penalties of $5, $79 and $537 were recorded as a component of income tax expense in the accompanying Consolidated Statements of Operations during fiscal years 2020, 2019 and 2018, respectively.

The Company’s policy is to remit earnings from foreign subsidiaries only to the extent the remittance does not result in an incremental U.S. tax liability. The Company does not currently provide for the additional U.S. and foreign income taxes which would become payable upon remission of undistributed earnings of foreign subsidiaries. If all undistributed earnings were remitted, an additional income tax provision of approximately $1.4 million would have been necessary as of October 2, 2020.

The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign taxing jurisdictions. The amount of unrecognized tax benefits recognized within the next twelve months may decrease due to expiration of the statute of limitations for certain years in various jurisdictions. However, it is possible that a jurisdiction may open an audit prior to the statute expiring that may result in adjustments to the Company’s tax filings. At this time, an estimate of the range of the reasonably possible change cannot be made.


Jurisdiction			Fiscal Years
United States			2017-2020
Canada			2016-2020
France			2017-2020
Germany			2018-2020
Italy			2018-2020
Switzerland			2010-2020