XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Income Taxes | 12 Months Ended
--- | ---
Oct. 01, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Note 12—Income Taxes The provision for income taxes consists of the following (in thousands):
|  | Year Ended |
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 1, 2020 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 37,886 |  |  | $ | 25,914 |  |  | $ | 8,188 |
State |  |  | 8,736 |  |  |  | 7,733 |  |  |  | 2,262 |
Total Current |  |  | 46,622 |  |  |  | 33,647 |  |  |  | 10,450 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | 2,556 |  |  |  | 2,633 |  |  |  | (5,844 | )
State |  |  | (90 | ) |  |  | 215 |  |  |  | (1,979 | )
Total Deferred |  |  | 2,466 |  |  |  | 2,848 |  |  |  | (7,823 | )
Total income tax provision |  | $ | 49,088 |  |  | $ | 36,495 |  |  | $ | 2,627 |
A reconciliation of the provision for income taxes to the amount computed at the federal statutory rate is as follows (in thousands):
|  | Year Ended |
|  | October 1, 2022 |  |  | October 2, 2021 |  |  | October 3, 2020 |
Federal income tax at statutory rate |  | $ | 43,705 |  |  | $ | 34,257 |  |  | $ | 12,851 |
Equity-based compensation |  |  | (1,025 | ) |  |  | (2,360 | ) |  |  | 375 |
Section 162(m) limitation |  |  | 805 |  |  |  | 2,826 |  |  |  | — |
Permanent differences |  |  | 96 |  |  |  | 564 |  |  |  | 89 |
Change in valuation allowance |  |  | — |  |  |  | (5,425 | ) |  |  | (11,373 | )
State taxes, net of federal benefit |  |  | 6,734 |  |  |  | 7,072 |  |  |  | 2,503 |
Other |  |  | (1,227 | ) |  |  | (439 | ) |  |  | (1,818 | )
Total income tax provision |  | $ | 49,088 |  |  | $ | 36,495 |  |  | $ | 2,627 |
Our effecti ve income tax rate for fiscal 2022 was 23.6% as compared to 22.4% in fiscal 2021. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are summarized below (in thousands):
|  | October 1, 2022 |  |  | October 2, 2021 |
Deferred tax assets: |  |  |  |  |  |
Compensation accruals |  | $ | 4,067 |  |  | $ | 5,674 |
Inventories |  |  | 3,496 |  |  |  | — |
Lease liabilities |  |  | 58,710 |  |  |  | 54,489 |
Equity-based compensation |  |  | 2,151 |  |  |  | 1,646 |
Reserves and other accruals |  |  | 1,059 |  |  |  | 1,138 |
Total deferred tax assets |  |  | 69,483 |  |  |  | 62,947 |
Deferred tax liabilities: |  |  |  |  |  |
Property, plant, and equipment |  |  | (4,066 | ) |  |  | (1,392 | )
Intangibles |  |  | (4,302 | ) |  |  | (3,849 | )
Lease assets |  |  | (57,798 | ) |  |  | (52,264 | )
Deferred financing cost |  |  | (310 | ) |  |  | (399 | )
Other |  |  | (1,739 | ) |  |  | (1,309 | )
Total deferred tax liabilities |  |  | (68,215 | ) |  |  | (59,213 | )
Deferred tax assets (liabilities), net |  | $ | 1,268 |  |  | $ | 3,734 |
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. The interest expense limitation passed in the CARES Act created a deferred tax asset for the fiscal year ended October 3, 2020 that we did not anticipate realizing in the immediate future; as a result, a valuation allowance was recorded. The $5.4 million valuation allowance was removed during the first quarter of fiscal 2021 as the realization of the CARES Act deferred tax asset was deemed probable due to the Company’s paydown of debt with proceeds from the IPO, which decreased interest expense. We are subject to United States federal and state taxes in the normal course of business and our income tax returns are subject to examination by the relevant tax authorities. We are no longer subject to United States federal examinations by taxing authorities for calendar years before 2018 and are no longer subject to state examinations for calendar years before 2017. We have not identified any material uncertain tax positions. In August 2022, the Inflation Reduction Act of 2022 was signed into law containing provisions effective January 1, 2023, including a 15% corporate minimum tax and a 1% excise tax on stock repurchases and several tax incentives to promote clean energy. The Company is evaluating the impact on future periods and at this time the Company does not expect it to have a material impact on its consolidated financial statements.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration