XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.21.2

Note 10 - Income Taxes | 12 Months Ended
--- | ---
Oct. 02, 2021
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | (10) Income Taxes The components of the provision for income taxes are as follows:
|  | Year Ended |
|  | October 2, |  |  | October 3, |  |  | September 28, |
(Dollars in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Provision for income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 17,904 |  |  | $ | 5,056 |  |  | $ | (126 | )
State |  |  | 1,707 |  |  |  | 529 |  |  |  | 185 |
|  |  | 19,611 |  |  |  | 5,585 |  |  |  | 59 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (180 | ) |  |  | (288 | ) |  |  | 1,649 |
State |  |  | 62 |  |  |  | (136 | ) |  |  | 149 |
|  |  | (118 | ) |  |  | (424 | ) |  |  | 1,798 |
Income taxes |  | $ | 19,493 |  |  | $ | 5,161 |  |  | $ | 1,857 |
Effective income tax rate |  |  | 22.6 | % |  |  | 21.4 | % |  |  | 24.9 | %
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) |  | October 2, 2021 |  |  | October 3, 2020 |  |  | September 28, 2019 |
Provision for income taxes at federal statutory rate |  | $ | 18,082 |  |  |  | 21.0 | % |  | $ | 5,076 |  |  |  | 21.0 | % |  | $ | 1,566 |  |  |  | 21.0 | %
State income taxes, net of federal tax benefit |  |  | 1,544 |  |  |  | 1.8 |  |  |  | 319 |  |  |  | 1.3 |  |  |  | 297 |  |  |  | 4.0 |
Stock-based compensation |  |  | (253 | ) |  |  | (0.3 | ) |  |  | 128 |  |  |  | 0.5 |  |  |  | 90 |  |  |  | 1.2 |
Valuation allowance |  |  | (134 | ) |  |  | (0.2 | ) |  |  | (50 | ) |  |  | (0.2 | ) |  |  | 24 |  |  |  | 0.3 |
Net operating loss carryback - CARES Act |  |  | - |  |  |  | - |  |  |  | (223 | ) |  |  | (0.9 | ) |  |  | - |  |  |  | - |
Federal tax return true-up |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (142 | ) |  |  | (1.9 | )
Other, net |  |  | 254 |  |  |  | 0.3 |  |  |  | (89 | ) |  |  | (0.3 | ) |  |  | 22 |  |  |  | 0.3 |
Provision for income taxes |  | $ | 19,493 |  |  |  | 22.6 | % |  | $ | 5,161 |  |  |  | 21.4 | % |  | $ | 1,857 |  |  |  | 24.9 | %
The components of deferred tax assets and liabilities are as follows:
|  | October 2, |  |  | October 3, |
(In thousands) |  | 2021 |  |  | 2020 |
Deferred tax assets: |  |  |  |  |  |  |  |
Defined benefit plans |  | $ | 2,921 |  |  | $ | 2,727 |
Accrued expenses and asset reserves |  |  | 2,280 |  |  |  | 1,885 |
Stock-based compensation |  |  | 1,204 |  |  |  | 1,328 |
Operating lease liability |  |  | 387 |  |  |  | 568 |
State net operating loss carryforwards and tax credits |  |  | 54 |  |  |  | 92 |
Valuation allowance |  |  | (73 | ) |  |  | (207 | )
Deferred tax assets |  |  | 6,773 |  |  |  | 6,393 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Plant and equipment |  |  | (10,901 | ) |  |  | (10,766 | )
Prepaid insurance |  |  | (1,374 | ) |  |  | (1,217 | )
Right of use assets |  |  | (385 | ) |  |  | (566 | )
Goodwill |  |  | (409 | ) |  |  | (412 | )
Deferred tax liabilities |  |  | (13,069 | ) |  |  | (12,961 | )
Net deferred tax liability |  | $ | (6,296 | ) |  | $ | (6,568 | )
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law. The CARES Act includes several changes impacting business, including, but not limited to, enhanced business interest deductibility, net operating loss ("NOL") carryback provisions, payroll tax deferral provisions and employee retention tax credits. We recorded a $223,000 tax benefit in 2020 resulting from the NOL carryback provisions of the CARES Act. As of October 2, 2021 and October 3, 2020, we recorded deferred tax liabilities (net of valuation allowances) of $6.3 million and $6.6 million, respectively, in other liabilities on our consolidated balance sheet. We have $2.1 million of state NOLs that begin to expire in 2031, but principally expire between 2031 and 2036. 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 October 2, 2021, we recorded a valuation allowance of $73,000 pertaining to various state NOLs 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 $134,000 decrease in the valuation allowance during 2021 is primarily due to the utilization of state NOLs for which an allowance had been recorded together with a reduction in state apportionment rates. As of October 2, 2021, 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 2021, 2020 and 2019. 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 2016 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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