INCOME TAXES

6 Months Ended

Mar. 29, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

For the three and six months ended March 29, 2024 and March 31, 2023, the Company’s earnings before income taxes, income tax expense and effective income tax rate were as follows:

	Three Months Ended						Six Months Ended
(thousands, except tax rate data)	March 29, 2024			March 31, 2023			March 29, 2024			March 31, 2023
Profit before income taxes	$	3,012		$	19,948		$	8,911		$	28,114
Income tax expense	856			5,087			2,800			7,374
Effective income tax rate	28.4		%	25.5		%	31.4		%	26.2		%

The increase in the effective tax rate for the three and six months ended March 29, 2024 compared to the three and six months ended March 31, 2023 was primarily related to a change in the geographic mix of profits or losses from a tax perspective for the current year period, as compared to the prior year period. The Company's effective tax rate is impacted by valuation allowances in certain tax jurisdictions and, as a result, changes in the geographic source of Company profits or losses between periods can have varying impacts on the Company's effective tax rate during a particular period.

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 March 29, 2024 and March 31, 2023 were:

March 29, 2024	March 31, 2023
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 2024 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.