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Income Taxes (Tables) | 12 Months Ended
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Sep. 29, 2024
Income Tax Disclosure [Abstract] |
Components of Income Taxes | Income taxes consist of the following in each fiscal year (in thousands):
|  | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |  |
Federal |  | $ | 32,251 |  |  | $ | 53,229 |  |  | $ | 28,934 |
State |  | 10,933 |  |  | 17,274 |  |  | 9,320 |
|  | 43,184 |  |  | 70,503 |  |  | 38,254 |
Deferred: |  |  |  |  |  |
Federal |  | (2,696) |  |  | (10,642) |  |  | 5,344 |
State |  | (8,116) |  |  | (1,347) |  |  | 2,513 |
|  | (10,812) |  |  | (11,989) |  |  | 7,857 |
Income tax expense from continuing operations |  | $ | 32,372 |  |  | $ | 58,514 |  |  | $ | 46,111 |
Reconciliation of the Federal Statutory Income Tax Rate to Effective Tax Rate | Our expense (benefit) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to pre-tax income (loss). The sources and tax effects of the differences are as follows (in thousands):
|  | 2024 |  | 2023 |  | 2022
Pre-tax income (loss) |  | $ | (4,323) |  |  |  | $ | 189,340 |  |  |  | $ | 161,892 |  |
Income tax at federal statutory rate |  | (908) |  | 21.0 | % |  | 39,821 |  | 21.0 | % |  | 33,964 |  | 21.0 | %
State income taxes, net of federal benefit |  | (233) |  | 5.4 | % |  | 10,587 |  | 5.6 | % |  | 8,437 |  | 5.2 | %
Stock-based compensation expense |  | 51 |  | (1.2) | % |  | 71 |  | — | % |  | 122 |  | 0.1 | %
Tax credits, net of valuation allowance |  | (340) |  | 7.9 | % |  | (818) |  | (0.4) | % |  | (906) |  | (0.6) | %
Nondeductible goodwill related to impairment |  | 35,075 |  | (811.5) | % |  | — |  | — | % |  | — |  | — | %
Nondeductible goodwill related to the sale of company-operated restaurants |  | 1,787 |  | (41.3) | % |  | 9,280 |  | 4.9 | % |  | — |  | — | %
Nondeductible transaction costs |  | — |  | — | % |  | — |  | — | % |  | 940 |  | 0.6 | %
Expense (benefit) related to COLIs |  | (4,703) |  | 108.8 | % |  | (1,947) |  | (1.0) | % |  | 3,319 |  | 2.1 | %
Officers’ compensation limitation |  | 1,306 |  | (30.2) | % |  | 1,188 |  | 0.6 | % |  | 677 |  | 0.4 | %
Other, net |  | 337 |  | (7.8) | % |  | 332 |  | 0.2 | % |  | (442) |  | (0.3) | %
Effective tax rate |  | $ | 32,372 |  | (748.9) | % |  | 58,514 |  | 30.9 | % |  | 46,111 |  | 28.5 | %
Deferred Tax Assets and Deferred Tax Liabilities | 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):
| 2024 |  | 2023
Deferred tax assets: |  |  |
Operating and finance lease liabilities | $ | 381,522 |  |  | $ | 372,095 |
Accrued defined benefit pension and postretirement benefits | 22,074 |  |  | 18,896 |
Deferred income | 15,465 |  |  | 15,137 |
Accrued legal settlements | 4,764 |  |  | 11,099 |
Accrued insurance | 7,135 |  |  | 8,086 |
Share-based compensation | 6,814 |  |  | 6,139 |
Accrued incentive compensation | 2,692 |  |  | 5,928 |
Capitalized research costs | 1,443 |  |  | 1,943 |
Tax loss and tax credit carryforwards | 387 |  |  | 1,956 |
Accrued compensation expense | 1,254 |  |  | 1,259 |
Other reserves and allowances | 1,241 |  |  | 1,144 |
Property and equipment, net of impairment | 5,847 |  |  | 181 |
Other, net | 4,201 |  |  | 3,852 |
Total gross deferred tax assets | 454,839 |  |  | 447,715 |
Valuation allowance | — |  |  | (1,043) |
Total net deferred tax assets | 454,839 |  |  | 446,672 |
Deferred tax liabilities: |  |  |
Operating and finance lease ROU assets | (378,531) |  |  | (380,040) |
Intangible assets | (88,378) |  |  | (84,969) |
Investment basis limitation | — |  |  | (6,191) |
Other | (1,542) |  |  | (1,701) |
Total gross deferred tax liabilities | (468,451) |  |  | (472,901) |
Net deferred tax liabilities | $ | (13,612) |  |  | $ | (26,229) |

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