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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes

The domestic and foreign components of income (loss) before income tax expense for fiscal 2023, 2022 and 2021 were as follows (in thousands):


	2023		2022		2021
U.S.	$	(84,557)	$	(64,267)	$	(33,409)
Foreign	245,570		222,570		193,820
	$	161,013	$	158,303	$	160,411

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) for fiscal 2023, 2022 and 2021 were as follows (in thousands):


	2023		2022		2021
Current:
Federal	$	24,779	$	12,506	$	9,217
State	302		386		524
Foreign	19,276		17,968		15,146
	44,357		30,860		24,887
Deferred:
Federal	(21,098)		(9,931)		(1,153)
State	(1,371)		(315)		1
Foreign	31		(554)		(2,236)
	(22,438)		(10,800)		(3,388)
	$	21,919	$	20,060	$	21,499

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rates

The following is a reconciliation of the federal statutory income tax rate to the effective income tax rates reflected in the Consolidated Statements of Comprehensive Income for fiscal 2023, 2022 and 2021:


	2023		2022		2021
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
(Decrease) increase resulting from:
Foreign tax rate differences	(23.8)		(23.2)		(20.3)
Withholding tax on dividends	0.4		2.2		2.9
Permanent differences	(1.3)		(0.8)		(0.6)
Excess tax benefits related to share-based compensation	(1.1)		(1.4)		(0.9)
Global intangible low-taxed income ("GILTI")	13.1		10.4		6.4
Audit settlements	—		3.7		5.0
Non-deductible compensation	2.8		2.5		3.8
Valuation allowances	3.5		(1.7)		(3.7)
Tax credits, net	(2.1)		(1.9)		—
Other, net	1.1		1.9		(0.2)
Effective income tax rate	13.6	%	12.7	%	13.4	%

Schedule of Components of Net Deferred Income Tax Assets (Liabilities)

The components of the net deferred income tax assets as of September 30, 2023 and October 1, 2022, were as follows (in thousands):


	2023		2022
Deferred income tax assets:
Loss/credit carryforwards	$	27,810	$	24,575
Inventories	24,183		21,869
Accrued employee benefits	14,548		17,224
Advanced payments from customers	25,291		7,257
Lease obligations	17,520		17,427
Research and development capitalization	8,602		—
Other	8,556		6,408
Total gross deferred income tax assets	126,510		94,760
Less valuation allowances	(31,949)		(25,562)
Deferred income tax assets	94,561		69,198
Deferred income tax liabilities:
Property, plant and equipment	21,931		19,878
Right-of-use assets	10,539		10,538
Tax on unremitted earnings	3,851		6,034
Deferred income tax liabilities	36,321		36,450
Net deferred income tax assets	$	58,240	$	32,748

Schedule of Reconciliation of Beginning And Ending Amounts of Unrecognized Income Tax Benefits

The following is a reconciliation of the beginning and ending amounts of unrecognized income tax benefits for the indicated fiscal years (in thousands):


	2023		2022		2021
Balance at beginning of fiscal year	$	8,998	$	4,635	$	2,096
Gross increases for tax positions of prior years	3,778		2,421		623
Gross increases for tax positions of the current year	2,105		2,531		2,161
Gross decreases for tax positions of prior years	(931)		(589)		(245)
Balance at end of fiscal year	$	13,950	$	8,998	$	4,635

Schedule of Years That Remain Subject to Examination by Major Tax Jurisdictions

The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign taxing jurisdictions. The following tax years remain subject to examination by the respective major tax jurisdictions:


Jurisdiction						Fiscal Years
China						2019-2023
Germany						2019-2023
Malaysia						2019-2023
Mexico						2019-2023
Romania						2020-2023
Thailand						2021-2023
United Kingdom						2020-2023
United States
Federal						2015, 2017, 2018, 2020-2023
State						2003-2006, 2009-2023