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Income Taxes | 12 Months Ended
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Sep. 27, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | 13. Income Taxes The provision for income tax expense (benefit) consists of the following:
|  | Fiscal Year Ended |
|  | September 27, 2014 |  |  | September 28, 2013 |  |  | September 29, 2012 |
|  | (in thousands) |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal. |  | $ | (329 | ) |  | $ | 52 |  |  | $ | (1,003 | )
State. |  |  | 873 |  |  |  | 958 |  |  |  | 603 |
Foreign. |  |  | 0 |  |  |  | 0 |  |  |  | 35 |
Total |  |  | 544 |  |  |  | 1,010 |  |  |  | (365 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal. |  |  | 4,171 |  |  |  | (2,915 | ) |  |  | 12,671 |
State. |  |  | 177 |  |  |  | (687 | ) |  |  | 198 |
Foreign. |  |  | (847 | ) |  |  | 0 |  |  |  | 312 |
Total |  |  | 3,501 |  |  |  | (3,602 | ) |  |  | 13,181 |
Total |  | $ | 4,045 |  |  | $ | (2,592 | ) |  | $ | 12,816 |
A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:
|  | Fiscal Year Ended |
|  | September 27, 2014 |  |  | September 28, 2013 |  |  | September 29, 2012 |
Statutory federal income tax rate |  |  | 35.0 | % |  |  | (35.0 | )% |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 2.1 |  |  |  | (5.2 | ) |  |  | 2.3 |
Other permanent differences |  |  | 0.2 |  |  |  | 2.4 |  |  |  | 0.6 |
Adjustment of prior year accruals |  |  | (0.2 | ) |  |  | 1.8 |  |  |  | 0.2 |
Uncertain tax positions |  |  | 0.4 |  |  |  | 3.7 |  |  |  | 0.0 |
Credits |  |  | (1.6 | ) |  |  | (29.3 | ) |  |  | (1.2 | )
Change in valuation allowances |  |  | (5.4 | ) |  |  | (9.0 | ) |  |  | (0.1 | )
Foreign rate differential |  |  | (1.3 | ) |  |  | (3.6 | ) |  |  | (0.1 | )
Effective income tax rate (benefit) |  |  | 29.2 | % |  |  | (74.2 | %) |  |  | 36.7 | %
Deferred income taxes reflect the impact of “temporary differences” between asset and liability amounts for financial reporting purposes and such amounts as determined based on existing tax laws. The tax effect of temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows:
|  | September 27, 2014 |  |  | September 28, 2013 |
|  | Deferred Tax Assets |  |  | Deferred Tax Liabilities |  |  | Deferred Tax Assets |  |  | Deferred Tax Liabilities |
Current: |  |  |  |
Allowance for doubtful accounts . |  | $ | 9,262 |  |  | $ | 0 |  |  | $ | 7,758 |  |  | $ | 0 |
Inventory write-downs |  |  | 12,018 |  |  |  | 0 |  |  |  | 14,983 |  |  |  | 0 |
Prepaid expenses. |  |  | 820 |  |  |  | 0 |  |  |  | 620 |  |  |  | 0 |
Nondeductible reserves |  |  | 1,420 |  |  |  | 0 |  |  |  | 2,782 |  |  |  | 0 |
State taxes. |  |  | 0 |  |  |  | 165 |  |  |  | 0 |  |  |  | 188 |
Employee benefits |  |  | 7,816 |  |  |  | 0 |  |  |  | 6,062 |  |  |  | 0 |
Other. |  |  | 3,233 |  |  |  | 0 |  |  |  | 3,012 |  |  |  | 0 |
Total |  |  | 34,569 |  |  |  | 165 |  |  |  | 35,218 |  |  |  | 188 |
Noncurrent: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization. |  |  | 0 |  |  |  | 46,458 |  |  |  | 0 |  |  |  | 39,100 |
Equity income. |  |  | 0 |  |  |  | 127 |  |  |  | 0 |  |  |  | 393 |
State net operating loss carryforward |  |  | 5,167 |  |  |  | 0 |  |  |  | 4,816 |  |  |  | 0 |
Stock based compensation |  |  | 5,263 |  |  |  | 0 |  |  |  | 6,061 |  |  |  | 0 |
State credits |  |  | 2,352 |  |  |  | 0 |  |  |  | 2,421 |  |  |  | 0 |
Other. |  |  | 7,281 |  |  |  | 0 |  |  |  | 5,349 |  |  |  | 0 |
Valuation allowance |  |  | (6,215 | ) |  |  | 0 |  |  |  | (6,968 | ) |  |  | 0 |
Total. |  |  | 13,848 |  |  |  | 46,585 |  |  |  | 11,679 |  |  |  | 39,493 |
Total. |  | $ | 48,417 |  |  | $ | 46,750 |  |  | $ | 46,897 |  |  | $ | 39,681 |
The Company has federal tax net operating losses of $6.6 million which begin to expire in 2033, state tax net operating losses of $102.6 million which expire at various times between 2014 and 2034, and foreign losses of $1.5 million, which do not expire. Pursuant to authoritative guidance, the benefit of stock options will only be recorded to stockholders’ equity when cash taxes payable are reduced. As of September 27, 2014, the portion of net operating loss carryforwards related to stock options is approximately $1.2 million, the benefit of which will be credited to additional paid-in capital when realized. The Company has federal income tax credits of $1.4 million which expire between 2024 and 2034. The Company also has state income tax credits of $3.6 million, which expire at various times beginning in 2014 through 2030. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including past operating results, future taxable income, and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance against any deferred tax assets. The Company has determined there will be insufficient future separate state taxable income for the separate parent company to realize its deferred tax assets. Therefore, valuation allowances of $6.2 million and $7.0 million (net of federal impact) at September 27, 2014 and September 28, 2013, respectively, have been provided to reduce state deferred tax assets to amounts considered recoverable. The Company classifies uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year. The Company recognizes interest and/or penalties related to income tax matters as a component of pretax income. As of September 27, 2014 and September 28, 2013, accrued interest was less than $0.1 million and no penalties were accrued related to uncertain tax positions. The following table, which excludes interest and penalties, summarizes the activity related to the Company’s unrecognized tax benefits for fiscal years ended September 27, 2014 and September 28, 2013 (in thousands):
Balance as of September 29, 2012 |  | $ | 262 |
Increases related to prior year tax positions |  |  | 247 |
Increases related to current year tax positions |  |  | 60 |
Settlements |  |  | (202 | )
Decreases related to lapse of statute of limitations |  |  | (3 | )
Balance as of September 28, 2013 |  | $ | 364 |
Increases related to prior year tax positions |  |  | 264 |
Increases related to current year tax positions |  |  | 14 |
Decreases related to prior year tax positions |  |  | (166 | )
Settlements |  |  | (388 | )
Decreases related to lapse of statute of limitations |  |  | (1 | )
Balance as of September 27, 2014 |  | $ | 87 |
As of September 27, 2014, unrecognized income tax benefits totaled approximately $0.1 million and all of the unrecognized tax benefits would, if recognized, impact the Company’s effective income tax rate. The Company is principally subject to taxation by the United States and various states within the United States. The Company’s tax filings in major jurisdictions are open to examination by tax authorities by the Internal Revenue Service from fiscal year ended 2011 forward and in various state taxing authorities generally from fiscal year ended 2010 forward. The Company does not believe there will be any significant change in its unrecognized tax benefits within the next twelve months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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