Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Sep. 29, 2018
Income Tax Disclosure [Abstract]  
Provision for income taxes
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