Income Taxes

3 Months Ended

Dec. 27, 2019

Income Tax Disclosure [Abstract]

Income Taxes

8. INCOME TAXES    

For the three months ended December 27, 2019 and December 28, 2018, the Company's effective tax rate attributable to income before income taxes was 17.4% and 23.2%, respectively. For the three months ended December 27, 2019 and December 28, 2018, the Company's income tax expense was $7,340 and $8,154 respectively. The decrease in the current period effective tax rate was primarily due to an increase in the excess tax benefit associated with stock compensation.

A valuation allowance has been recorded against certain net operating losses in certain foreign jurisdictions.  A valuation allowance is recorded when it is determined to be more likely than not that these assets will not be fully realized in the foreseeable future. The realization of deferred tax assets is dependent upon whether the Company can generate future taxable income in the appropriate character and jurisdiction to utilize the assets. The amount of the deferred tax assets considered realizable is subject to adjustment in future periods.

The Company recognizes the benefits of uncertain tax positions taken or expected to be taken in tax returns in the provision for income taxes only for those positions that we have determined are more likely than not to be realized upon examination. We record interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the three months ended December 27, 2019 there was no change in the balance of unrecognized tax benefits.

For the three months ended December 27, 2019, the Company made no additional provision for U.S. or non-U.S. income taxes for unrecognized deferred tax liabilities for temporary differences related to basis differences in investments in subsidiaries, as the investments are essentially permanent in duration.