Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Sep. 29, 2018

The provision for income taxes consists of the following (in thousands):



	Period ended
	September 29, 2018			September 30, 2017
Current:
Federal	$	4,629		$	215
State	16			47
Foreign	121			127
Total current	$	4,766		$	389
Deferred:
Federal	$	5,927		$	(112	)
State	(233		)	380
Total deferred	5,694			268
Provision for income taxes	$	10,460		$	657

Schedule of income before income tax, domestic and foreign

For financial reporting purposes our income before provision for income taxes includes the following components (in thousands):



	Period ended
	September 29, 2018		September 30, 2017
United States, net of loss attributable to non-controlling interest	$	156	$	1,767
Foreign	11,534		9,401
	$	11,690	$	11,168

Reconciliation between actual provision for incomes taxes and federal statutory income tax rate

A reconciliation between actual provision for income taxes and the provision for income taxes computed using the federal statutory income tax rate of 24.25% for fiscal year 2018 and 34.0% for fiscal year 2017 is as follows (in thousands):



	Period ended
	September 29, 2018			September 30, 2017
Income tax expense at the statutory rate of 24.25% and 34.0%	$	2,861		$	3,797
State income tax benefit, net of federal income tax effect	16			(80		)
Impact of Federal rate change	624			—
Federal transition tax	10,039			—
Impact of state rate changes	(236		)	115
Rate difference and nondeductible items in foreign jurisdictions	—			33
Impact of foreign earnings in tax-free zone	(2,676		)	(3,052		)
Valuation allowance adjustments	—			362
Nondeductible compensation	—			—
Nondeductible amortization and other permanent differences	(163		)	(496		)
Other	(5		)	(22		)
Provision for income taxes	$	10,460		$	657

Significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities are as follows (in thousands):



	September 29, 2018			September 30, 2017
Deferred tax assets:
Federal net operating loss carryforwards	$	—		$	2,902
State net operating loss carryforwards	1,870			1,573
Derivative — interest rate contracts	—			21
Alternative minimum tax credit carryforward	397			404
Inventories and reserves	3,277			3,681
Accrued compensation and benefits	1,881			3,139
Receivable allowances and reserves	371			543
Other	67			98
Gross deferred tax assets	7,863			12,361
Less valuation allowance — state net operating loss	(493		)	(493		)
Net deferred tax assets	7,370			11,868

Deferred tax liabilities:
Depreciation	(5,459		)	(3,501		)
Goodwill and intangibles	(2,529		)	(3,319		)
Derivative — interest rate contracts	(46		)	—
Other	(94		)	(46		)
Gross deferred tax liabilities	(8,128		)	(6,866		)
Net deferred tax (liability) asset	(758		)	5,002