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INCOME TAXES
 12 Months Ended
Sep. 29, 2023
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:
 202320222021
United States$16,070 $51,229 $99,774 
Foreign9,754 7,659 13,148 
 $25,824 $58,888 $112,922 

Income tax expense for the respective years consisted of the following:
 202320222021
Current:   
Federal$7,631 $8,798 $22,860 
State2,267 834 6,392 
Foreign3,286 2,922 3,236 
Deferred(6,894)1,843 (2,947)
 $6,290 $14,397 $29,541 
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:
 20232022
Deferred tax assets:  
Inventories$4,628 $2,366 
Compensation6,954 8,099 
Lease liabilities
12,956 14,168 
Tax credit carryforwards2,116 2,356 
Net operating loss carryforwards5,488 4,805 
Research and Experimental Expenditures4,536 — 
Other7,310 6,430 
Total gross deferred tax assets43,988 38,224 
Less valuation allowance7,101 6,700 
Deferred tax assets36,887 31,524 
Deferred tax liabilities:  
Goodwill and other intangibles2,476 1,848 
Right of Use assets
12,571 13,864 
Depreciation and amortization4,578 5,528 
Foreign statutory reserves748 625 
Net deferred tax assets$16,514 $9,659 
 
The net deferred tax assets recorded in the accompanying Consolidated Balance Sheets as of the years ended September 29, 2023 and September 30, 2022 were as follows:
 20232022
Non-current assets$18,352 $11,411 
Non-current liabilities1,838 1,752 
Net deferred tax assets$16,514 $9,659 

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:
 202320222021
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
State income tax, net of federal benefit3.4 %3.4 %4.4 %
Uncertain tax positions, net of settlements(0.3)%(0.5)%0.1 %
Foreign-derived intangible income ("FDII") deduction(2.3)%(0.9)%(1.1)%
Foreign tax rate differences2.2 %1.5 %0.6 %
Compensation2.4 %0.1 %0.8 %
Changes in estimates related to prior years tax return filing(1.3)%(1.6)%(0.5)%
Deferred tax asset - valuation allowance1.7 %1.6 %0.6 %
Tax Credits(2.5)%(0.7)%(0.4)%
Other0.1 %0.5 %0.7 %
 24.4 %24.4 %26.2 %

The Company’s net operating loss carryforwards and their expirations as of September 29, 2023 were as follows:
 StateForeignTotal
Year of expiration   
2024-2028$2,118 $8,346 $10,464 
2029-20332,326 6,365 8,691 
2034-20384,447 — 4,447 
2039-2043774 — 774 
Indefinite2 6,800 6,802 
Total$9,667 $21,511 $31,178 

The Company has tax credit carryforwards as follows:
 StateFederalTotal
Year of expiration   
2024-2028$1,365 $1,365 
2029-2033598 598 
2034-2038119 119 
Total$2,082 $— $2,082 
 
A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
20232022
Beginning balance$6,201 $6,757 
Gross increases - tax positions in prior period— — 
Gross decreases - tax positions in prior period— — 
Gross increases - tax positions in current period493 476 
Settlements— — 
Lapse of statute of limitations
(598)(1,032)
Ending balance$6,096 $6,201 
 
The total accrued interest and penalties with respect to income taxes was approximately $1,913 and $1,866 for the years ended September 29, 2023 and September 30, 2022, respectively.  The Company’s liability for unrecognized tax benefits as of September 29, 2023 was $6,096, and if recognized, $5,107 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 $47, $(15) and $(63) were recorded as a component of income tax expense in the accompanying Consolidated Statements of Operations during fiscal years 2023, 2022 and 2021, 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 $15.4 million would have been necessary as of September 29, 2023.
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 States2020-2023
Canada2019-2023
France2020-2023
Germany2018-2023
Italy2021-2023
Switzerland2013-2023