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Income Taxes | 12 Months Ended
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Oct. 03, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income taxes consist of the following in each fiscal year (in thousands):
|  | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |  |
Federal |  | $ | 36,051 |  |  | $ | 19,721 |  |  | $ | 14,683 |
State |  | 11,793 |  |  | 7,844 |  |  | 5,242 |
|  | 47,844 |  |  | 27,565 |  |  | 19,925 |
Deferred: |  |  |  |  |  |
Federal |  | 4,440 |  |  | 4,625 |  |  | 3,750 |
State |  | 3,568 |  |  | 537 |  |  | 350 |
|  | 8,008 |  |  | 5,162 |  |  | 4,100 |
Income tax expense from continuing operations |  | $ | 55,852 |  |  | $ | 32,727 |  |  | $ | 24,025 |
Income tax expense (benefit) from discontinued operations |  | $ | — |  |  | $ | 144 |  |  | $ | (2,863) |
A reconciliation of the federal statutory income tax rate to our effective tax rate for continuing operations is as follows:
|  | 2021 |  | 2020 |  | 2019
Income tax expense at federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit |  | 5.1 | % |  | 5.3 | % |  | 5.3 | %
Stock compensation excess tax benefit |  | (0.5) | % |  | (0.4) | % |  | (0.1) | %
Benefit of jobs tax credits, net of valuation allowance |  | (0.1) | % |  | (0.5) | % |  | (0.3) | %
Release of federal tax liability |  | — | % |  | — | % |  | (0.6) | %
Adjustment to state tax provision |  | 0.7 | % |  | — | % |  | (0.9) | %
Benefit related to COLIs |  | (1.5) | % |  | (0.9) | % |  | (1.0) | %
Termination of interest rate swaps |  | — | % |  | — | % |  | (2.6) | %
Officers’ compensation limitation |  | 0.5 | % |  | 2.2 | % |  | 1.1 | %
Other, net |  | — | % |  | 0.1 | % |  | (1.1) | %
|  | 25.2 | % |  | 26.8 | % |  | 20.8 | %
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below (in thousands):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Operating and finance lease liabilities | $ | 237,509 |  |  | $ | 234,926 |
Accrued defined benefit pension and postretirement benefits | 28,837 |  |  | 44,436 |
Deferred income | 12,083 |  |  | 12,921 |
Impairment | 6,957 |  |  | 8,895 |
Accrued insurance | 5,389 |  |  | 6,500 |
Other reserves and allowances | 4,050 |  |  | 2,440 |
Share-based compensation | 4,039 |  |  | 4,143 |
Accrued incentive compensation | 3,455 |  |  | 2,585 |
Tax loss and tax credit carryforwards | 3,129 |  |  | 4,273 |
Accrued compensation expense | 710 |  |  | 672 |
Other, net | 3,424 |  |  | 2,364 |
Total gross deferred tax assets | 309,582 |  |  | 324,155 |
Valuation allowance | (1,349) |  |  | (2,104) |
Total net deferred tax assets | 308,233 |  |  | 322,051 |
Deferred tax liabilities: |  |  |
Operating and finance lease ROU assets | (242,038) |  |  | (235,373) |
Intangible assets | (11,349) |  |  | (11,437) |
Property and equipment, principally due to differences in depreciation | (1,036) |  |  | (1,781) |
Other | (2,293) |  |  | (1,138) |
Total gross deferred tax liabilities | (256,716) |  |  | (249,729) |
Net deferred tax assets | $ | 51,517 |  |  | $ | 72,322 |
Deferred tax assets as of October 3, 2021 include state net operating loss carryforwards of approximately $16.6 million, of which $12.1 million has an indefinite carryforward. The remainder will expire at various times between 2022 and 2038. At October 3, 2021, we recorded a valuation allowance of $1.3 million related to state tax credits, which decreased from the $2.1 million at September 27, 2020 due to the release of the valuation allowance on California Enterprise Zone Credits and state net operating loss carryforwards. We believe it is more likely than not that these credit carryforwards will not be realized and that all other deferred tax assets will be realized through future taxable income or alternative tax strategies. 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 2018 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 2017 and forward.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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