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INCOME TAXES
 12 Months Ended
Sep. 30, 2022
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:
 202220212020
United States$51,229 $99,774 $72,602 
Foreign7,659 13,148 1,100 
 $58,888 $112,922 $73,702 

Income tax expense for the respective years consisted of the following:
 202220212020
Current:   
Federal$8,798 $22,860 $13,735 
State834 6,392 3,348 
Foreign2,922 3,236 1,109 
Deferred1,843 (2,947)277 
 $14,397 $29,541 $18,469 
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:
 20222021
Deferred tax assets:  
Inventories$2,366 $1,355 
Compensation8,099 8,771 
Tax credit carryforwards2,356 2,817 
Net operating loss carryforwards4,805 3,996 
Other6,430 8,756 
Total gross deferred tax assets24,056 25,695 
Less valuation allowance6,700 6,372 
Deferred tax assets17,356 19,323 
Deferred tax liabilities:  
Goodwill and other intangibles1,848 1,717 
Depreciation and amortization5,224 5,714 
Foreign statutory reserves625 362 
Net deferred tax assets$9,659 $11,530 
 
The net deferred tax assets recorded in the accompanying Consolidated Balance Sheets as of the years ended September 30, 2022 and October 1, 2021 were as follows:
 20222021
Non-current assets$11,411 $13,129 
Non-current liabilities1,752 1,599 
Net deferred tax assets$9,659 $11,530 

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:
 202220212020
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
State income tax, net of federal benefit3.4 %4.4 %4.6 %
Uncertain tax positions, net of settlements(0.5)%0.1 %(0.1)%
Foreign-derived intangible income ("FDII") deduction(0.9)%(1.1)%(1.1)%
Net tax cost of foreign income2.0 %0.7 %— %
Compensation0.1 %0.8 %0.7 %
Changes in estimates related to prior years tax return filing(1.6)%0.6 %0.5 %
Deferred tax asset - valuation allowance1.6 %(0.5)%0.1 %
Other(0.7)%0.2 %(0.6)%
 24.4 %26.2 %25.1 %

The Company’s net operating loss carryforwards and their expirations as of September 30, 2022 were as follows:
 StateForeignTotal
Year of expiration   
2023-2027$801 $8,021 $8,822 
2028-20323,116 6,267 9,383 
2033-20376,028 — 6,028 
2038-2042721 — 721 
Indefinite— 3,466 3,466 
Total$10,666 $17,754 $28,420 
The Company has tax credit carryforwards as follows:
 StateFederalTotal
Year of expiration   
2023-2027$1,365 $1,365 
2028-2032751 751 
2033-2037239 239 
Total$2,355 $— $2,355 
 
A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
20212020
Beginning balance$6,757 $7,372 
Gross increases - tax positions in prior period— — 
Gross increases - tax positions in current period476 1,288 
Settlements— — 
Lapse of statute of limitations
(1,032)(1,903)
Ending balance$6,201 $6,757 
 
The total accrued interest and penalties with respect to income taxes was approximately $1,866 and $1,884 for the years ended September 30, 2022 and October 1, 2021, respectively.  The Company’s liability for unrecognized tax benefits as of September 30, 2022 was $6,201, and if recognized, $5,188 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 $(15), $(63) and $5 were recorded as a component of income tax expense in the accompanying Consolidated Statements of Operations during fiscal years 2022, 2021 and 2020, 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 $16.1 million would have been necessary as of September 30, 2022.
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 States2019-2022
Canada2018-2022
France2019-2022
Germany2020-2022
Italy2020-2022
Switzerland2012-2022