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Note I - Income Taxes | 12 Months Ended
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Sep. 30, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE I – INCOME TAXES Income tax expense (benefit) is as follows:
|  | Fiscal year ended |
|  | September 30, |  |  | September 24, |  |  | September 26, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Current |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 27,142 |  |  | $ | 25,126 |  |  | $ | 33,348 |
Foreign |  |  | 2,770 |  |  |  | 2,433 |  |  |  | 2,260 |
State |  |  | 5,227 |  |  |  | 5,622 |  |  |  | 6,294 |
Total current expense |  |  | 35,139 |  |  |  | 33,181 |  |  |  | 41,902 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | 6,857 |  |  | $ | 6,444 |  |  | $ | (109 | )
Foreign |  |  | (422 | ) |  |  | (145 | ) |  |  | (34 | )
State |  |  | 1,452 |  |  |  | 1,364 |  |  |  | (23 | )
Total deferred expense(benefit) |  |  | 7,887 |  |  |  | 7,663 |  |  |  | (166 | )
Total expense |  | $ | 43,026 |  |  | $ | 40,844 |  |  | $ | 41,736 |
The change in deferred taxes for the year ended September 30, 2017 does not equal deferred tax expense in the amount of $6,632,000 as a result of purchase accounting related to the Hill & Valley acquisition . The provisions for income taxes differ from the amounts computed by applying the statutory federal income tax rate of approximately 35% to earnings before income taxes for the following reasons:
|  | Fiscal year ended |
|  | September 30, |  |  | September 24, |  |  | September 26, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in thousands) |
Income taxes at federal statutory rates |  | $ | 42,770 |  |  | $ | 40,887 |  |  | $ | 39,172 |
Increase (decrease)in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit |  |  | 4,341 |  |  |  | 4,541 |  |  |  | 4,196 |
Domestic production activities deduction |  |  | (1,820 | ) |  |  | (2,100 | ) |  |  | (2,100 | )
Increase in gross unrecognized tax benefits |  |  | 20 |  |  |  | 20 |  |  |  | 39 |
(Decrease) increase in federal valuation allowance |  |  | (6 | ) |  |  | 240 |  |  |  | 1,366 |
Share based compensation |  |  | (1,923 | ) |  |  | (1,109 | ) |  |  | 308 |
Other, net |  |  | (356 | ) |  |  | (1,635 | ) |  |  | (1,245 | )
Income tax expense |  | $ | 43,026 |  |  | $ | 40,844 |  |  | $ | 41,736 |
Deferred tax assets and liabilities consist of the following:
|  | September 30, |  |  | September 24, |
|  | 2017 |  |  | 2016 |
|  | (in thousands) |
Deferred tax assets |  |  |  |  |  |  |  |
Vacation accrual |  | $ | 1,740 |  |  | $ | 1,646 |
Capital loss carry forwards |  |  | 1,668 |  |  |  | 1,674 |
Insurance accrual |  |  | 3,225 |  |  |  | 3,317 |
Deferred income |  |  | 927 |  |  |  | 112 |
Allowances |  |  | 1,991 |  |  |  | 1,514 |
Inventory capitalization |  |  | 1,235 |  |  |  | 954 |
Share-based compensation |  |  | 1,607 |  |  |  | 1,253 |
Net Operating Loss |  |  | 1,559 |  |  |  | 1,691 |
Total deferred tax assets |  |  | 13,952 |  |  |  | 12,161 |
Valuation allowance |  |  | (1,668 | ) |  |  | (1,674 | )
Total deferred tax assets, net |  |  | 12,284 |  |  |  | 10,487 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Amortization of goodwill and other intangible assets |  |  | 35,043 |  |  |  | 27,358 |
Depreciation of property and equipment |  |  | 39,946 |  |  |  | 31,315 |
Total deferred tax liabilities |  |  | 74,989 |  |  |  | 58,673 |
Total deferred tax liabilities, net |  | $ | 62,705 |  |  | $ | 48,186 |
As of September 30, 2017, we have federal and state capital loss carry forwards of approximately $4.6 million from the sale of marketable securities in fiscal years 2015 and 2016. These carry forwards will expire in 2020, 2021 and 2022. As we have no foreseeable capital gains that would allow us to use this asset, we have recorded a valuation allowance for the full amount of this deferred tax asset. As of September 30, 2017, we have a federal net operating loss carry forward of approximately $5 million from the PHILLY SWIRL acquisition. These carry forwards are subject to an annual limitation under Code Section 382 of approximately $378,000 and will expire in 2033. We have determined there are no limitations to the total use of this tax asset and accordingly, have not recorded a valuation allowance for this deferred tax asset. We have undistributed earnings of our Mexican and Canadian subsidiaries that are considered to be indefinitely reinvested and accordingly no provision for US federal and state income taxes has been provided thereon.

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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