XML 26 R15.htm IDEA: XBRL DOCUMENT v3.6.0.2
INCOME TAXES
 12 Months Ended
Oct. 01, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 9. INCOME TAXES

 

The components of our provision for income taxes for our fiscal years 2016 and 2015 are as follows:

 

   2016   2015 
   Current:          
     Federal  $1,078,000   $1,270,000 
     State   254,000    294,000 
 Deferred:   1,332,000    1,564,000 
     Federal   32,000    81,000 
     State   3,000    9,000 
    35,000    90,000 
   $1,367,000   $1,654,000 

 

A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows:

 

   2016   2015 
         
  Tax provision at the statutory rate of 34%  $2,154,000   $2,344,000 
  Non-controlling interests   (656,000)   (605,000)
  State income taxes, net of federal income tax   186,000    212,000 
  FICA tip credit   (343,000)   (313,000)
  True up adjustment   (26,000)   (16,000)
  Other permanent items   52,000    32,000 
   $1,367,000   $1,654,000 

 

We have deferred tax assets which arise primarily due to depreciation recorded at different rates for tax and book purposes offset by cost basis differences in depreciable assets due to the deferral of the recognition of insurance recoveries on casualty losses for tax purposes, investments in and management fees paid by limited partnerships, accruals for potential uninsured claims, bonuses accrued for book purposes but not paid within two and a half months for tax purposes, the capitalization of certain inventory costs for tax purposes not recognized for financial reporting purposes, the recognition of revenue from gift cards not redeemed within twelve months of issuance, allowances for uncollectable receivables, unfunded limited retirement commitments and tax credit carryforwards generated as a result of the application of alternative minimum taxes.

 

The components of our deferred tax assets at October 1, 2016 and October 3, 2015 were as follows:

 

         
   2016   2015 
   Current:          
   Reversal of aged payables  $27,000   $27,000 
   Capitalized inventory costs   26,000    23,000 
   Accrued bonuses   342,000    327,000 
   Accruals for potential uninsured claims   41,000    25,000 
   Gift cards   178,000    141,000 
   Limited partnership management fees   (233,000)   (168,000)
   $381,000   $375,000 

 

Long-Term:        
   Book/tax differences in property and equipment  $628,000   $650,000 
   Limited partnership investments   197,000    213,000 
   Accrued limited retirement   37,000    40,000 
   $862,000   $903,000