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Income Taxes
 12 Months Ended
Sep. 24, 2011
Income Taxes [Abstract]  
Income Taxes

2. Income Taxes

 

Deferred Income Tax Liabilities and Assets—Significant components of the Company's deferred tax liabilities and assets are as follows:

     2011      2010  

Deferred tax liabilities:

      

Property and equipment tax/book differences

    $ 70,435,000       $ 74,831,000   

Property tax method

      1,359,000         1,288,000   
  

 

 

     

 

 

  

Total deferred tax liabilities

      71,794,000         76,119,000   
  

 

 

     

 

 

  

Deferred tax assets:

      

Insurance reserves

      7,469,000         6,566,000   

Advance payments on purchases contracts

      389,000         302,000   

Vacation accrual

      2,331,000         2,141,000   

Closed store accrual

      513,000         619,000   

Inventory

      638,000         840,000   

Other

      3,321,000         2,566,000   
  

 

 

     

 

 

  

Total deferred tax assets

      14,661,000         13,034,000   
  

 

 

     

 

 

  

Net deferred tax liabilities

    $ 57,133,000       $ 63,085,000   
  

 

 

     

 

 

  

 

Current deferred income tax benefits of $10.8 million and $9.1 million at September 24, 2011 and September 25, 2010, respectively, included in other current assets, result from timing differences arising from deferred vendor income, vacation pay, bad debt and self-insurance reserves, and from capitalization of certain overhead costs in inventory for tax purposes.

 

At September 24, 2011 and September 25, 2010 refundable current income taxes totaling $2.6 million and $6.0 million, respectively, are included in the line item "Other current assets" on the Consolidated Balance Sheets.

 

Income Tax Expense—Income tax expense differs from the amounts computed by applying the statutory federal rates to income before income taxes. The reasons for the differences are as follows:

     2011     2010     2009  

Federal tax at statutory rate

    $ 21,249,000      $ 17,086,000      $ 15,649,000   

State income tax, net of federal tax benefits

      2,145,000        2,629,000        838,000   

Federal tax credits

      (1,824,000 )      (1,480,000 )      (829,000 ) 

Adjustment to deferred income tax rates

      —          —          945,000   

Other

      81,000        (260,000 )      176,000   
  

 

 

    

 

 

    

 

 

  

Total

    $ 21,651,000      $ 17,975,000      $ 16,779,000   
  

 

 

    

 

 

    

 

 

  

 

Current and deferred income tax expense (benefit) is as follows:

     2011     2010      2009  

Current:

        

Federal

    $ 23,664,000      $ 10,377,000       $ (176,000 ) 

State

      3,939,000        2,474,000         778,000   
  

 

 

    

 

 

     

 

 

  

Total current

      27,603,000        12,851,000         602,000   
  

 

 

    

 

 

     

 

 

  

Deferred:

        

Federal

      (5,040,000 )      4,856,000         14,169,000   

State

      (912,000 )      268,000         2,008,000   
  

 

 

    

 

 

     

 

 

  

Total deferred

      (5,952,000 )      5,124,000         16,177,000   
  

 

 

    

 

 

     

 

 

  

Total expense

    $ 21,651,000      $ 17,975,000       $ 16,779,000   
  

 

 

    

 

 

     

 

 

  

 

Uncertain Tax Positions—A reserve for uncertain tax positions, including interest and penalties, of $0.2 million are included in the Company's income taxes payable at both September 24, 2011 and September 25, 2010. The reserve for uncertain tax positions has been recorded because based on management's estimates; it is likely that certain tax positions will be successfully challenged by taxing authorities.