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Income Taxes
 12 Months Ended
Sep. 27, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

9. Income Taxes

For federal income tax purposes, as well as for state income tax purposes in the majority of the states in which the Partnership operates, the earnings attributable to the Partnership and the Operating Partnership are not subject to income tax at the partnership level. With the exception of those states that impose an entity-level income tax on partnerships, the taxable income or loss attributable to the Partnership and to the Operating Partnership, which may vary substantially from the income (loss) before income taxes reported by the Partnership in the consolidated statement of operations, are includable in the federal and state income tax returns of the Common Unitholders. The aggregate difference in the basis of the Partnership’s net assets for financial and tax reporting purposes cannot be readily determined as the Partnership does not have access to each Common Unitholder’s basis in the Partnership.

As described in Note 1, “Partnership Organization and Formation,” the earnings of the Corporate Entities are subject to U.S. corporate level income tax. However, based upon past performance, the Corporate Entities are currently reporting an income tax provision composed primarily of minimum state income taxes. A full valuation allowance has been provided against the deferred tax assets (with the exception of certain net operating loss carryforwards (“NOLs”) that arose after 2017) based upon an analysis of all available evidence, both negative and positive at the balance sheet date, which, taken as a whole, indicates that it is more likely than not that sufficient future taxable income will not be available to utilize the assets. Management’s periodic reviews include, among other things, the nature and amount of the taxable income and expense items, the expected timing of when assets will be used or liabilities will be required to be reported and the reliability of historical profitability of businesses that are expected to provide future earnings. Furthermore, management considered tax-planning strategies it could use to increase the likelihood that the deferred tax assets will be realized.

NOLs generated by the Corporate Entities beginning in 2018 may be carried forward indefinitely. The Corporate Entities generated a taxable loss during the 2022 tax year, which resulted in a $295 deferred tax benefit recorded during fiscal 2023.

The income tax provision of all the legal entities included in the Partnership’s consolidated statement of operations, which is composed primarily of state income taxes in the few states that impose taxes on partnerships and minimum state income taxes on the Corporate Entities, consists of the following:

 

 

 

Year Ended

 

 

 

September 27,

 

 

September 28,

 

 

September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Current provision

 

 

 

 

 

 

 

 

 

Federal

 

$

5

 

 

$

6

 

 

$

8

 

State and local

 

 

761

 

 

 

728

 

 

 

955

 

 

 

 

766

 

 

 

734

 

 

 

963

 

Deferred provision (benefit)

 

 

582

 

 

 

—

 

 

 

(295

)

 

 

$

1,348

 

 

$

734

 

 

$

668

 

 

The provision for income taxes differs from income taxes computed at the U.S. federal statutory rate as a result of the following:

 

 

 

Year Ended

 

 

 

September 27,

 

 

September 28,

 

 

September 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Income tax provision at federal statutory tax rate

 

$

22,663

 

 

$

15,731

 

 

$

26,128

 

Impact of Partnership income not subject to
   federal income taxes

 

 

(29,814

)

 

 

(20,245

)

 

 

(31,604

)

Permanent differences

 

 

(280

)

 

 

135

 

 

 

104

 

Change in valuation allowance

 

 

9,505

 

 

 

4,725

 

 

 

6,721

 

State income taxes

 

 

(547

)

 

 

449

 

 

 

(552

)

Other

 

 

(179

)

 

 

(61

)

 

 

(129

)

Provision for income taxes - current and deferred

 

$

1,348

 

 

$

734

 

 

$

668

 

 

The components of net deferred taxes and the related valuation allowance using currently enacted tax rates are as follows:

 

 

 

Year Ended

 

 

 

September 27,

 

 

September 28,

 

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

56,549

 

 

$

55,785

 

Allowance for doubtful accounts

 

 

323

 

 

 

272

 

Inventory

 

 

742

 

 

 

873

 

Deferred revenue

 

 

429

 

 

 

486

 

Other accruals

 

 

8,735

 

 

 

4,026

 

Total deferred tax assets

 

 

66,778

 

 

 

61,442

 

Deferred tax liabilities:

 

 

 

 

 

 

Intangible assets

 

 

1,886

 

 

 

278

 

Property, plant and equipment

 

 

10,362

 

 

 

8,949

 

Total deferred tax liabilities

 

 

12,248

 

 

 

9,227

 

Net deferred tax assets

 

 

54,530

 

 

 

52,215

 

Valuation allowance

 

 

(53,784

)

 

 

(50,888

)

Net deferred tax assets

 

$

746

 

 

$

1,327