INCOME TAXES

9 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXESFor the three and nine months ended June 30, 2023 and July 1, 2022, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

	Three Months Ended						Nine Months Ended
(thousands, except tax rate data)	June 30, 2023			July 1, 2022			June 30, 2023			July 1, 2022
Profit before income taxes	$	19,822		$	19,244		$	47,936		$	47,043
Income tax expense	5,021			5,162			12,395			12,205
Effective income tax rate	25.3		%	26.8		%	25.9		%	25.9		%

The decrease in the effective tax rate for the three months ended June 30, 2023 compared to the three months ended July 1, 2022 is due to the favorable impact from the change in estimate after filing prior year tax returns. The effective tax rate between the nine month periods ended June 30, 2023 and July 1, 2022 was relatively consistent with no primary factors impacting the rate.

The impact of the Company’s operations in jurisdictions where a valuation allowance is assessed is removed from the overall effective tax rate methodology and recorded directly based on year to date results for the year for which no tax expense or benefit can be recognized.  The significant tax jurisdictions that have a valuation allowance for the periods ended June 30, 2023 and July 1, 2022 were:

June 30, 2023	July 1, 2022
Indonesia	Indonesia
Switzerland	Switzerland

The Company regularly assesses the adequacy of its provisions for income tax contingencies in accordance with the applicable authoritative guidance on accounting for income taxes.  As a result, the Company may adjust the reserves for unrecognized tax benefits due to the impact of changes in its assumptions or as a result of new facts and developments, such as changes to interpretations of relevant tax law, assessments from taxing authorities, settlements with taxing authorities and lapses of statutes of limitation.  The Company’s 2023 fiscal year tax expense is anticipated to be unchanged related to uncertain income tax positions.

In accordance with its accounting policy, the Company recognizes accrued interest and penalties related to unrecognized benefits as a component of income tax expense.