Income Taxes

12 Months Ended

Sep. 25, 2021

2. Income Taxes

Deferred Income Tax Liabilities and Assets – Deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax laws and rates. Significant components of the Company’s deferred tax liabilities and assets are as follows:



	2021		2020
Deferred tax liabilities:
Property and equipment tax/book differences	$	88,736,000	$	90,307,000
Property tax method		1,051,000		1,359,000
Total deferred tax liabilities		89,787,000		91,666,000
Deferred tax assets:
Insurance reserves		5,030,000		5,362,000
Advance payments on purchases contracts		553,000		690,000
Vacation accrual		1,867,000		1,815,000
Inventory		1,368,000		1,138,000
Deferred compensation		5,532,000		4,390,000
Interest rate swaps		1,107,000		3,311,000
Other		1,562,000		1,626,000
Total deferred tax assets		17,019,000		18,332,000
Net deferred tax liabilities	$	72,768,000	$	73,334,000

Refundable current income taxes totaling $2.7 million and $5.6 million at September 25, 2021 and September 26, 2020, 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:



	2021		2020		2019
Federal tax at statutory rate	$	68,818,000	$	49,359,000	$	22,386,000
State income tax, net of federal tax benefits		10,872,000		7,825,000		3,726,000
Federal tax credits		(1,700,000)		(513,000)		(1,184,000)
Other		(107,000)		(228,000)		90,000
Total	$	77,883,000	$	56,443,000	$	25,018,000

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



	2021		2020		2019
Current:
Federal	$	66,526,000	$	45,261,000	$	18,774,000
State		14,129,000		10,445,000		4,797,000
Total current expense		80,655,000		55,706,000		23,571,000
Deferred:
Federal		(2,482,000)		1,163,000		1,510,000
State		(290,000)		(426,000)		(63,000)
Total deferred (benefit) expense		(2,772,000)		737,000		1,447,000
Total expense	$	77,883,000	$	56,443,000	$	25,018,000

- 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.

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