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INCOME TAXES
 12 Months Ended
Sep. 27, 2024
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:
 202420232022
United States$(32,560)$16,070 $51,229 
Foreign2,698 9,754 7,659 
 $(29,862)$25,824 $58,888 

Income tax expense for the respective years consisted of the following:
 202420232022
Current:   
Federal$159 $7,631 $8,798 
State40 2,267 834 
Foreign1,618 3,286 2,922 
Deferred(5,146)(6,894)1,843 
 $(3,329)$6,290 $14,397 

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:
 20242023
Deferred tax assets:  
Inventories$6,126 $4,628 
Compensation4,386 6,954 
Lease liabilities
10,746 12,956 
Tax credit carryforwards2,272 2,116 
Net operating loss carryforwards5,374 5,488 
Research and Experimental Expenditures8,846 4,536 
Other7,510 7,310 
Total gross deferred tax assets45,260 43,988 
Less valuation allowance6,367 7,101 
Deferred tax assets38,893 36,887 
Deferred tax liabilities:  
Goodwill and other intangibles1,395 2,476 
Right of Use assets
10,316 12,571 
Depreciation and amortization4,941 4,578 
Foreign statutory reserves734 748 
Net deferred tax assets$21,507 $16,514 
 
The net deferred tax assets recorded in the accompanying Consolidated Balance Sheets as of the years ended September 27, 2024 and September 29, 2023 were as follows:
 20242023
Non-current assets$23,420 $18,352 
Non-current liabilities1,913 1,838 
Net deferred tax assets$21,507 $16,514 

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:
 202420232022
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
State income tax, net of federal benefit2.2 %3.4 %3.4 %
Uncertain tax positions, net of settlements— %(0.3)%(0.5)%
Foreign-derived intangible income ("FDII") deduction— %(2.3)%(0.9)%
Foreign tax rate differences(4.5)%2.2 %1.5 %
Compensation(3.8)%2.4 %0.1 %
Changes in estimates related to prior years tax return filing(0.2)%(1.3)%(1.6)%
Goodwill impairment(7.3)%— %— %
Deferred tax asset - valuation allowance3.5 %1.7 %1.6 %
Tax Credits1.6 %(2.5)%(0.7)%
Other(1.4)%0.1 %0.5 %
 11.1 %24.4 %24.4 %

The Company’s net operating loss carryforwards and their expirations as of September 27, 2024 were as follows:
 StateForeignTotal
Year of expiration   
2025-2029$2,157 $10,497 $12,654 
2030-20342,115 2,396 4,511 
2035-20395,111 — 5,111 
2040-20442,678 — 2,678 
Indefinite1,570 8,266 9,836 
Total$13,631 $21,159 $34,790 

The Company has tax credit carryforwards as follows:
 StateFederalTotal
Year of expiration   
2025-2029$1,282 $— $1,282 
2030-2034598 — 598 
2035-2039— — — 
2040-2044— 392 392 
Total$1,880 $392 $2,272 
 
A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
20242023
Beginning balance$6,096 $6,201 
Gross increases - tax positions in prior period— — 
Gross decreases - tax positions in prior period— — 
Gross increases - tax positions in current period460 493 
Settlements— — 
Lapse of statute of limitations
(484)(598)
Ending balance$6,072 $6,096 
 
The total accrued interest and penalties with respect to income taxes was $2,014 and $1,913 for the years ended September 27, 2024 and September 29, 2023, respectively.  The Company’s liability for unrecognized tax benefits as of September 27, 2024 was $6,072, and if recognized, $5,121 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 $101, $47 and $(15) were recorded as a component of
income tax expense in the accompanying Consolidated Statements of Operations during fiscal years 2024, 2023 and 2022, 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 $15.8 million would have been necessary as of September 27, 2024.
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 States2021-2024
Canada2020-2024
France2020-2024
Germany2018-2024
Italy2022-2024
Switzerland2014-2024