FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 71
Table of Contents
The components of income taxes are as follows:
2021
Current:
Federal
Foreign
State
Total current
Deferred:
Federal
Foreign
State
Total deferred
Income taxes (benefit)
$
$
9,907
23,801
4,684
38,392
4,625
2,898
639
8,162
46,554
2020
$
$
14,789
18,997
3,271
37,057
(35,603)
(1,843)
(3,399)
(40,845)
(3,788)
2019
$
$
23,302
29,460
4,240
57,002
(5,666)
1,413
(345)
(4,598)
52,404
Realization of deferred tax assets is dependent, in part, upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers projected future taxable
income, tax planning strategies, carryback opportunities and reversal of existing deferred tax liabilities in making its
assessment of the recoverability of deferred tax assets.
The tax effects of temporary differences that generated deferred tax assets and liabilities are as follows:
October 2,
2021
Deferred tax assets:
Benefit accruals
Inventory reserves
Tax benefit carryforwards
Contract reserves not currently deductible
Lease liability
Other accrued expenses
Total gross deferred tax assets
Less valuation allowance
Total net deferred tax assets
Deferred tax liabilities:
Differences in bases and depreciation of property, plant and equipment
Pension
Total gross deferred tax liabilities
Net deferred tax assets (liabilities)
$
$
$
$
October 3,
2020
68,657
31,900
15,434
13,294
16,997
10,983
157,265
(13,896)
143,369
$
164,581
25,661
190,242
(46,873)
$
$
$
78,703
31,571
14,146
16,418
17,622
12,510
170,970
(14,784)
156,186
152,926
24,810
177,736
(21,550)
Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets.
At October 2, 2021 foreign tax benefit carryforwards total $27,840 with expirations ranging from 2023 to indefinite life.
Domestic benefit carryforwards include capital loss of $5,000 expiring in 2024 and state tax losses of $579 expiring in
2022. We also have $1,391 and $6,673 of federal and state tax credit carryforward with expirations from 2030 to 2031
and 2027 to indefinite life, respectively. The change in the valuation allowance relates to tax benefit carryforwards that
were utilized during 2021.
We have no material unrecognized tax benefits which, if ultimately recognized, will reduce our annual effective tax
rate.
We are subject to income taxes in the U.S. and in various states and foreign jurisdictions. Tax regulations within each
jurisdiction are subject to the interpretation of the related tax laws and regulations and require the application of
significant judgment. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S.
income tax examinations by tax authorities in significant jurisdictions for tax years before 2019. The statute of
limitations in several jurisdictions will expire in the next twelve months and we will have no unrecognized tax benefits
recognized if the statute of limitations expires without the relevant taxing authority examining the applicable returns.
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