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Income Taxes | 12 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income TaxesThe provision for income tax expense (benefit) consists of the following:
| Fiscal Year Ended
| September 30, 2023 |  | September 24, 2022 |  | September 25, 2021
| (in thousands)
Current: |  |  |  |  |
Federal | $ | 41,375 |  |  | $ | 11,391 |  |  | $ | 49,941 |
State | 6,229 |  |  | 4,418 |  |  | 6,193 |
Foreign | 997 |  |  | 2,297 |  |  | 645 |
Total | 48,601 |  |  | 18,106 |  |  | 56,779 |
Deferred: |  |  |  |  |
Federal | (10,339) |  |  | 27,276 |  |  | (14,740) |
State | (2,547) |  |  | 1,710 |  |  | (690) |
Foreign | 633 |  |  | (858) |  |  | 686 |
Total | (12,253) |  |  | 28,128 |  |  | (14,744) |
Total | $ | 36,348 |  |  | $ | 46,234 |  |  | $ | 42,035 |
A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:
| Fiscal Year Ended
| September 30, 2023 |  | September 24, 2022 |  | September 25, 2021
Statutory federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 1.5 |  |  | 2.5 |  |  | 2.2 |
Other permanent differences | 0.5 |  |  | 0.4 |  |  | 0.1 |
Adjustment of prior year accruals | (0.2) |  |  | 0.2 |  |  | (0.1) |
Credits | (0.7) |  |  | (0.5) |  |  | (0.4) |
Stock based compensation | (0.3) |  |  | (0.5) |  |  | (1.4) |
Other | 0.6 |  |  | 0.1 |  |  | 0.2 |
Effective income tax rate | 22.4 | % |  | 23.2 | % |  | 21.6 | %
The tax effect of temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows:
| September 30, 2023 |  | September 24, 2022
| Deferred Tax Assets |  | Deferred Tax Liabilities |  | Deferred Tax Assets |  | Deferred Tax Liabilities
| (in thousands)
Allowance for doubtful accounts | $ | 5,338 |  |  | $ | — |  |  | $ | 6,286 |  |  | $ | — |
Inventory write-downs | 18,230 |  |  | — |  |  | 14,413 |  |  | — |
Prepaid expenses |  |  | 1,602 |  |  | — |  |  | 1,787 |
Nondeductible reserves | 10,045 |  |  | — |  |  | 8,898 |  |  | — |
State taxes | 181 |  |  | — |  |  | — |  |  | 279 |
Employee benefits | 10,743 |  |  | — |  |  | 9,799 |  |  | — |
Depreciation and amortization |  |  | 192,235 |  |  | — |  |  | 194,225 |
Equity earnings |  |  | 653 |  |  | — |  |  | 564 |
State net operating loss carryforward | 6,158 |  |  | — |  |  | 6,415 |  |  | — |
Stock based compensation | 8,155 |  |  | — |  |  | 7,330 |  |  | — |
State credits | 3,055 |  |  | — |  |  | 2,979 |  |  | — |
Other | 5,389 |  |  | — |  |  | 966 |  |  | — |
Valuation allowance | (7,659) |  |  | — |  |  | (6,734) |  |  | — |
Total | $ | 59,635 |  |  | $ | 194,490 |  |  | $ | 50,352 |  |  | $ | 196,855 |
The Company also has state tax net operating losses of $69.2 million, which expire at various times between 2023 and 2043, and foreign losses of $8.1 million, which do not expire. The Company has state income tax credits of $3.5 million, which expire at various times beginning in 2024 through 2043. 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 and foreign taxable income for the separate parent company and foreign subsidiaries to realize the deferred tax assets. Therefore, valuation allowances of $7.7 million and $6.7 million (net of federal impact) at September 30, 2023 and September 24, 2022, 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 30, 2023 and September 24, 2022, accrued interest was less than $0.1 million and no penalties were accrued related to uncertain tax positions. The following table summarizes the activity related to the Company’s unrecognized tax benefits for fiscal years ended September 30, 2023 and September 24, 2022:
| (in thousands)
Balance as of September 25, 2021 | $ | 342 |
Increases related to prior year tax positions | 22 |
Increases related to current year tax positions | 110 |
Decreases related to prior year tax positions | — |
Settlements | — |
Decreases related to lapse of statute of limitations | (92) |
Balance as of September 24, 2022 | $ | 382 |
Increases related to prior year tax positions | 222 |
Increases related to current year tax positions | 100 |
Decreases related to prior year tax positions | (10) |
Settlements | (222) |
Decreases related to lapse of statute of limitations | (81) |
Balance as of September 30, 2023 | $ | 391 |
As of September 30, 2023, unrecognized income tax benefits totaled approximately $0.4 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 2020 forward and in various state taxing authorities generally from fiscal year ended 2019 forward. The Company believes there is a reasonable chance that its unrecognized tax benefits will decrease by less than $0.1 million 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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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