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Income Taxes | 12 Months Ended
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Oct. 02, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income taxes consist of the following in each fiscal year (in thousands):
|  | 2016 |  | 2015 |  | 2014
Current: |  |  |  |  |  |
Federal |  | $ | 32,276 |  |  | $ | 59,362 |  |  | $ | 43,864 |
State |  | 5,315 |  |  | 9,598 |  |  | 3,770 |
|  | 37,591 |  |  | 68,960 |  |  | 47,634 |
Deferred: |  |  |  |  |  |
Federal |  | 29,975 |  |  | (2,018 | ) |  | 3,700 |
State |  | 4,998 |  |  | (1,173 | ) |  | 452 |
|  | 34,973 |  |  | (3,191 | ) |  | 4,152 |
Income tax expense from continuing operations |  | $ | 72,564 |  |  | $ | 65,769 |  |  | $ | 51,786 |
Income tax benefit from discontinued operations |  | $ | (1,365 | ) |  | $ | (2,410 | ) |  | $ | (3,629 | )
A reconciliation of the federal statutory income tax rate to our effective tax rate for continuing operations is as follows:
|  | 2016 |  | 2015 |  | 2014
Computed at federal statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal tax benefit |  | 3.7 |  |  | 3.7 |  |  | 3.3 |
Benefit of jobs tax credits, net of valuation allowance |  | (1.0 | ) |  | (1.1 | ) |  | (1.2 | )
(Benefit) expense related to COLIs |  | (1.3 | ) |  | 0.3 |  |  | (1.6 | )
Other, net |  | 0.1 |  |  | (1.0 | ) |  | (0.2 | )
|  | 36.5 | % |  | 36.9 | % |  | 35.3 | %
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each year-end are presented below (in thousands):
|  | 2016 |  | 2015
Deferred tax assets: |  |  |  |
Accrued defined benefit pension and postretirement benefits |  | $ | 89,253 |  |  | $ | 92,456 |
Impairment |  | 21,904 |  |  | 23,982 |
Interest rate swaps |  | 18,483 |  |  | 10,208 |
Accrued insurance |  | 14,378 |  |  | 13,245 |
Tax loss and tax credit carryforwards |  | 13,624 |  |  | 14,081 |
Leasing transactions |  | 11,144 |  |  | 11,442 |
Share-based compensation |  | 9,091 |  |  | 9,331 |
Lease commitments related to closed or refranchised locations |  | 7,440 |  |  | 11,471 |
Accrued incentive compensation |  | 5,536 |  |  | 6,412 |
Accrued vacation pay expense |  | 2,137 |  |  | 2,193 |
Other reserves and allowances |  | 1,935 |  |  | 1,584 |
Deferred income |  | 1,887 |  |  | 1,417 |
Other, net |  | 3,876 |  |  | 2,030 |
Total gross deferred tax assets |  | 200,688 |  |  | 199,852 |
Valuation allowance |  | (11,365 | ) |  | (11,563 | )
Total net deferred tax assets |  | 189,323 |  |  | 188,289 |
Deferred tax liabilities: |  |  |  |
Property and equipment, principally due to differences in depreciation |  | (38,859 | ) |  | (38,403 | )
Intangible assets |  | (31,827 | ) |  | (30,132 | )
Other |  | (1,050 | ) |  | (1,568 | )
Total gross deferred tax liabilities |  | (71,736 | ) |  | (70,103 | )
Net deferred tax assets |  | $ | 117,587 |  |  | $ | 118,186 |
Deferred tax assets as of October 2, 2016 include state net operating loss carry-forwards of approximately $72.5 million expiring at various times between 2017 and 2036. At October 2, 2016 and September 27, 2015, we recorded a valuation allowance related to losses and state tax credits of $11.4 million and $11.6 million, respectively. We believe that it is more likely than not that these net operating loss and credit carry-forwards will not be realized and that the remaining deferred tax assets will be realized through future taxable income or alternative tax strategies. Our gross unrecognized tax benefits associated with uncertain income tax positions decreased during fiscal 2015 due to the conclusion of an audit regarding a specific claim with California. A reconciliation of the beginning and ending amounts of unrecognized tax benefits follows (in thousands):
|  | 2016 |  | 2015
Balance beginning of year |  | $ | — |  |  | $ | 374 |
Change related to tax positions |  | — |  |  | (374 | )
Balance at end of year |  | $ | — |  |  | $ | — |
From time to time, we may take positions for filing our tax returns which may differ from the treatment of the same item for financial reporting purposes. The ultimate outcome of these items will not be known until the Internal Revenue Service or state has completed its examination or until the statute of limitations has expired. The major jurisdictions in which the Company files income tax returns include the United States and states in which we operate that impose an income tax. The federal statutes of limitations have not expired for fiscal years 2013 and forward. The statutes of limitations for California and Texas, which constitute the Company’s major state tax jurisdictions, have not expired for fiscal years 2012 and forward and 2011 and forward, respectively.

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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