XML 32 R18.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Note 9 - Income Taxes | 12 Months Ended
--- | ---
Sep. 29, 2018
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | ( 9 ) Income Taxes The components of the provision for income taxes are as follows:
|  | Year Ended |
|  | September 29, |  |  | September 30, |  |  | October 1, |
(Dollars in thousands) |  | 2018 |  |  | 2017 |  |  | 2016 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 8,265 |  |  | $ | 8,269 |  |  | $ | 17,075 |
State |  |  | 906 |  |  |  | 848 |  |  |  | 1,434 |
|  |  | 9,171 |  |  |  | 9,117 |  |  |  | 18,509 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (2,862 | ) |  |  | 2,455 |  |  |  | 396 |
State |  |  | 55 |  |  |  | 48 |  |  |  | 140 |
|  |  | (2,807 | ) |  |  | 2,503 |  |  |  | 536 |
Income taxes |  | $ | 6,364 |  |  | $ | 11,620 |  |  | $ | 19,045 |
Effective income tax rate |  |  | 14.9 | % |  |  | 34.0 | % |  |  | 33.8 | %
The reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes is as follows:
|  | Year Ended |
(Dollars in thousands) |  | September 29, 2018 |  |  | September 30, 2017 |  |  | October 1, 2016 |
Provision for income taxes at federal statutory rate |  | $ | 10,444 |  |  |  | 24.5 | % |  | $ | 11,959 |  |  |  | 35.0 | % |  | $ | 19,701 |  |  |  | 35.0 | %
Change in federal tax rate - Tax Cuts and Jobs Act |  |  | (3,307 | ) |  |  | (7.8 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Qualified production activities deduction |  |  | (832 | ) |  |  | (2.0 | ) |  |  | (768 | ) |  |  | (2.2 | ) |  |  | (1,596 | ) |  |  | (2.8 | )
Excess tax benefits of stock-based compensation |  |  | (634 | ) |  |  | (1.5 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Valuation allowance |  |  | (18 | ) |  |  | (0.0 | ) |  |  | (29 | ) |  |  | (0.1 | ) |  |  | (213 | ) |  |  | (0.4 | )
State income taxes, net of federal tax benefit |  |  | 739 |  |  |  | 1.7 |  |  |  | 598 |  |  |  | 1.8 |  |  |  | 1,093 |  |  |  | 1.9 |
Other, net |  |  | (28 | ) |  |  | (0.0 | ) |  |  | (140 | ) |  |  | (0.5 | ) |  |  | 60 |  |  |  | 0.1 |
Provision for income taxes |  | $ | 6,364 |  |  |  | 14.9 | % |  | $ | 11,620 |  |  |  | 34.0 | % |  | $ | 19,045 |  |  |  | 33.8 | %
The components of deferred tax assets and liabilities are as follows:
|  | September 29, |  |  | September 30, |
(In thousands) |  | 2018 |  |  | 2017 |
Deferred tax assets: |  |  |  |  |  |  |  |
Defined benefit plans |  | $ | 2,302 |  |  | $ | 3,556 |
Accrued expenses and asset reserves |  |  | 1,939 |  |  |  | 3,069 |
Stock-based compensation |  |  | 1,120 |  |  |  | 1,907 |
State net operating loss carryforwards and tax credits |  |  | 233 |  |  |  | 284 |
Valuation allowance |  |  | (233 | ) |  |  | (251 | )
Deferred tax assets |  |  | 5,361 |  |  |  | 8,565 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Plant and equipment |  |  | (9,490 | ) |  |  | (15,093 | )
Prepaid insurance and other reserves |  |  | (1,211 | ) |  |  | (1,575 | )
Deferred tax liabilities |  |  | (10,701 | ) |  |  | (16,668 | )
Net deferred tax liability |  | $ | (5,340 | ) |  | $ | (8,103 | )
On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21% effective January 1, 2018. Since our fiscal year ends on the Saturday closest to September 30 rather than the calendar year, we are subject to IRS rules relating to transitional income tax rates. Based on these rules, our federal statutory rate was 24.5% for fiscal 2018 and will be 21% for fiscal 2019 and beyond. Based on the provisions of the Act, we remeasured our deferred tax assets and liabilities and adjusted our estimated annual federal income tax rate to incorporate the lower corporate tax rate into our tax provision during our first fiscal quarter which resulted in a $3.3 million reduction of income tax expense. We are still in process of evaluating the income tax effect of the Act on the executive compensation limitations that will be effective for our fiscal year 2019. As of September 29, 2018, we recorded a deferred tax liability (net of valuation allowance) of $5.3 million in other liabilities on our consolidated balance sheet. As of September 30, 2017, we recorded a deferred tax liability (net of valuation allowance) of $8.1 million in other liabilities on our consolidated balance sheet. We have $6.6 million of state net operating loss carryforwards (“NOLs”) that begin to expire in 2019, but principally expire between 2019 and 2032. We have also recorded deferred tax assets of $16,000 for various state tax credits that begin to expire in 2019, but principally expire between 2019 and 2020. The realization of our deferred tax assets is entirely dependent upon our ability to generate future taxable income in applicable jurisdictions. GAAP requires that we periodically assess the need to establish a reserve against our deferred tax assets to the extent we no longer believe it is more likely than not that they will be fully realized. As of September 29, 2018, we recorded a valuation allowance of $233,000 pertaining to various state NOLs and tax credits that were not expected to be utilized. The valuation allowance is subject to periodic review and adjustment based on changes in facts and circumstances and would be reduced should we utilize the state NOLs and tax credits against which an allowance had previously been provided or determine that such utilization was more likely than not. The $18,000 decrease in the valuation allowance during 2018 is primarily due to the expiration of state NOLs for which an allowance had been previously recorded. As of September 29, 2018, we had no material, known tax exposures that required the establishment of contingency reserves for uncertain tax positions. We classify interest and penalties related to unrecognized tax benefits as part of income tax expense. There were no interest and penalties related to unrecognized tax benefits incurred during 2018, 2017 and 2016. We file U.S. federal income tax returns as well as state and local income tax returns in various jurisdictions. Federal and various state tax returns filed subsequent to 2013 remain subject to examination.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration