10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 73
Table of Contents
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 1,
2022
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 liabilities
$
$
$
$
October 2,
2021
65,863
30,053
10,885
10,447
18,473
14,824
150,545
(8,650)
141,895
$
167,990
28,802
196,792
(54,897)
$
$
$
68,657
31,900
15,434
13,294
16,997
10,983
157,265
(13,896)
143,369
164,591
25,661
190,252
(46,883)
Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets.
At October 2, 2022, foreign tax loss carryforwards total $19,953 with expirations ranging from 2023 to indefinite life.
We have $245 and $5,988 of federal and state tax credit carryforward with expirations of 2031 and 2027 to indefinite
life, respectively. The change in the valuation allowance primarily relates to tax benefit carryforwards that were utilized
during 2022.
We record unrecognized tax benefits as liabilities and we adjust these liabilities when our judgment changes as a
result of the evaluation of new information not previously available. Further, we record interest and penalties related to
unrecognized tax benefits in income tax expense. We expensed interest and penalties of $43 related to $848 of
unrecognized tax benefits in 2022.
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 2020. 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.
The Inflation Reduction Act ("the Act") was signed into law on August 16, 2022. We evaluated the Act and have
determined the we do not expect it to have a material impact on our financial statements and related disclosures.
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