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INCOME TAXES
 12 Months Ended
Oct. 01, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
 
The U.S. and foreign income before income taxes for the respective years consisted of the following:
 202120202019
United States$99,774 $72,602 $59,261 
Foreign13,148 1,100 7,246 
 $112,922 $73,702 $66,507 

Income tax expense for the respective years consisted of the following:
 202120202019
Current:   
Federal$22,860 $13,735 $11,074 
State6,392 3,348 2,752 
Foreign3,236 1,109 1,422 
Deferred(2,947)277 (154)
 $29,541 $18,469 $15,094 

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:
 20212020
Deferred tax assets:  
Inventories$1,355 $1,346 
Compensation8,771 7,726 
Tax credit carryforwards2,817 3,235 
Net operating loss carryforwards3,996 4,427 
Other8,756 7,154 
Total gross deferred tax assets25,695 23,888 
Less valuation allowance6,372 6,524 
Deferred tax assets19,323 17,364 
Deferred tax liabilities:  
Goodwill and other intangibles1,717 2,080 
Depreciation and amortization5,714 5,735 
Foreign statutory reserves362 288 
Net deferred tax assets$11,530 $9,261 
 
The net deferred tax assets recorded in the accompanying Consolidated Balance Sheets as of the years ended October 1, 2021 and October 2, 2020 were as follows:
 20212020
Non-current assets$13,129 $10,679 
Non-current liabilities1,599 1,418 
Net deferred tax assets$11,530 $9,261 

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:
 202120202019
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %*
State income tax, net of federal benefit4.4 %4.6 %4.3 %
Uncertain tax positions, net of settlements0.1 %(0.1)%(0.5)%
Foreign-derived intangible income ("FDII") deduction(1.1)%(1.1)%(0.9)%
Net tax cost of foreign income0.7 %— %0.5 %
Compensation0.8 %0.7 %(0.7)%
Other0.3 %— %(1.0)%
 26.2 %25.1 %22.7 %

The Tax Cuts and Jobs Act of 2017 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.

The Company’s net operating loss carryforwards and their expirations as of October 1, 2021 were as follows:
 StateForeignTotal
Year of expiration   
2022-2026$653 $6,403 $7,056 
2027-20312,928 4,689 7,617 
2032-20366,857 — 6,857 
2037-2041648 — 648 
Indefinite— 3,372 3,372 
Total$11,086 $14,464 $25,550 

The Company has tax credit carryforwards as follows:
 StateFederalTotal
Year of expiration   
2022-2026$1,554 $— $1,554 
2027-2031904 — 904 
2032-2036359 — 359 
Total$2,817 $— $2,817 
 
A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
20202019
Beginning balance$7,372 $7,931 
Gross increases - tax positions in prior period— 82 
Gross increases - tax positions in current period1,288 909 
Settlements— — 
Lapse of statute of limitations
(1,903)(1,550)
Ending balance$6,757 $7,372 
 
The total accrued interest and penalties with respect to income taxes was approximately $1,884 and $1,947 for the years ended October 1, 2021 and October 2, 2020, respectively.  The Company’s liability for unrecognized tax benefits as of October 1, 2021 was $6,757, and if recognized, $5,474 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 $(63), $5 and $79 were recorded as a component of income tax expense in the accompanying Consolidated Statements of Operations during fiscal years 2021, 2020 and 2019, 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 $1.9 million would have been necessary as of October 1, 2021.
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.

The following tax years remain subject to examination by the Company's respective major tax jurisdictions:
JurisdictionFiscal Years
United States2018-2021
Canada2017-2021
France2018-2021
Germany2019-2021
Italy2019-2021
Switzerland2011-2021