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Income Taxes | 12 Months Ended
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Sep. 27, 2015
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | INCOME TAXES Income tax expense (benefit) consists of the following:
(Thousands of Dollars) | 2015 |  |  | 2014 |  |  | 2013 |
Current: |  |  |  |  |
Federal | 720 |  |  | 451 |  |  | (7,915 | )
State | (92 | ) |  | (571 | ) |  | (693 | )
Deferred | 12,966 |  |  | 6,410 |  |  | (54,806 | )
| 13,594 |  |  | 6,290 |  |  | (63,414 | )
Continuing operations | 13,594 |  |  | 6,290 |  |  | (62,745 | )
Discontinued operations | — |  |  | — |  |  | (669 | )
| 13,594 |  |  | 6,290 |  |  | (63,414 | )
Income tax expense (benefit) related to continuing operations differs from the amounts computed by applying the U.S. federal income tax rate to income (loss) before income taxes. The reasons for these differences are as follows:
(Percent of Income (Loss) Before Income Taxes) | 2015 |  |  | 2014 |  |  | 2013 |
Computed “expected” income tax expense (benefit) | 35.0 |  |  | 35.0 |  |  | (35.0 | )
State income tax expense (benefit), net of federal tax impact | (7.1 | ) |  | 11.0 |  |  | (2.6 | )
Net income of associated companies taxed at dividend rates | (5.2 | ) |  | (9.3 | ) |  | (0.8 | )
Domestic production deduction | — |  |  | — |  |  | 0.4 |
Resolution of tax matters | 0.5 |  |  | 3.6 |  |  | 0.1 |
Non-deductible expenses | 2.8 |  |  | 7.9 |  |  | 0.4 |
Valuation allowance | 15.9 |  |  | (4.5 | ) |  | (2.1 | )
Warrant valuation | (6.1 | ) |  | (15.1 | ) |  | — |
CODI tax attribute reduction | — |  |  | 18.3 |  |  | (4.8 | )
Other | 0.1 |  |  | (1.8 | ) |  | (0.7 | )
| 35.9 |  |  | 45.1 |  |  | (45.1 | )
Net deferred income tax liabilities consist of the following components:
(Thousands of Dollars) | September 27 2015 |  |  | September 28 2014 |
Deferred income tax liabilities: |  |  |
Property and equipment | (35,593 | ) |  | (40,549 | )
Identified intangible assets | (51,380 | ) |  | (54,819 | )
Long-term debt | (15,176 | ) |  | (13,440 | )
| (102,149 | ) |  | (108,808 | )
Deferred income tax assets: |  |  |  |
Investments | 17,521 |  |  | 20,765 |
Accrued compensation | 4,551 |  |  | 5,182 |
Allowance for doubtful accounts and losses on loans | 1,184 |  |  | 1,258 |
Pension and postretirement benefits | 5,719 |  |  | 5,210 |
Net operating loss carryforwards | 81,228 |  |  | 87,867 |
Accrued expenses | 572 |  |  | 809 |
Other | 1,720 |  |  | 618 |
| 112,495 |  |  | 121,709 |
Valuation allowance | (32,483 | ) |  | (26,439 | )
Net deferred income tax liabilities | (22,137 | ) |  | (13,538 | )
Net deferred income tax liabilities are classified as follows:
(Thousands of Dollars) | September 27 2015 |  |  | September 28 2014 |
Current assets | 15,659 |  |  | 1,228 |
Non-current liabilities | (37,796 | ) |  | (14,766 | )
Net deferred income tax liabilities | (22,137 | ) |  | (13,538 | )
A reconciliation of 2015 and 2014 changes in gross unrecognized tax benefits is as follows:
(Thousands of Dollars) | 2015 |  |  | 2014 |
Balance, beginning of year | 13,520 |  |  | 12,671 |
Decreases in tax positions for prior years | (1,861 | ) |  | (1,592 | )
Increases in tax positions for the current year | 1,098 |  |  | 3,580 |
Lapse in statute of limitations | (958 | ) |  | (1,139 | )
Balance, end of year | 11,799 |  |  | 13,520 |
Approximately $7,475,000 and $9,045,000 of the gross unrecognized tax benefit balances for 2015 and 2014, respectively, relate to state net operating losses which are netted against deferred taxes on our balance sheet. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $7,786,000 at September 27, 2015. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest related to unrecognized tax benefits was, net of tax, $330,000 at September 27, 2015 and $385,000 at September 28, 2014. There were no amounts provided for penalties at September 27, 2015 or September 28, 2014. At September 27, 2015, we had approximately $1,072,922,000 of net operating loss ("NOL") carryforwards for state tax purposes that expire between 2016 and 2034. Such NOL carryforwards result in a deferred income tax asset of $34,263,000 at September 27, 2015, substantially all of which is offset by a valuation allowance. In the current period, $6,043,000 of additional valuation allowance was recorded related to the recoverability of certain deferred tax assets. $2,615,000 of this amount pertains to prior periods. Amounts related to prior periods were determined to be immaterial. The valuation allowance not related to NOL carryforwards is $4,294,000 at September 27, 2015 and $1,337,000 at September 28, 2014. A 2012 Federal NOL was carried back to 2010, resulting in a cash refund of $9,500,000, which was received in 2013. A Federal NOL based on 2013 results was carried back to 2011, resulting in a refund of $6,244,000. The refund was received in 2014. In connection with the Chapter 11 Proceedings in 2012, we realized substantial cancellation of debt income (“CODI”) for income tax purposes. This income was not immediately taxable for Federal income tax purposes because the CODI resulted from our reorganization under the U.S. Bankruptcy Code. For U.S. income tax reporting purposes, we were required to reduce certain tax attributes, including any net operating loss carryforwards, capital losses, certain tax credit carryforwards, and the tax basis in certain assets and liabilities, including debt, in a total amount equal to the tax gain on the extinguishment of debt. The reduction in the basis of certain assets also resulted in reduced depreciation and amortization expense for income tax purposes beginning in 2013. As a result of the reduction in the tax basis of debt noted above, we have been recognizing additional interest expense for income tax purposes, beginning in 2012. This additional interest expense was scheduled to be recognized through the maturity date of the debt ending in 2017. The 2014 Refinancing resulted in additional interest expense related to the CODI basis adjustment being deductible for income tax purposes in 2014. We reported a Federal NOL of approximately $165,489,000 for our 2014 year, a substantial portion of which is due to this additional interest expense. We expect to report taxable income in 2015 which will reduce the Federal NOL to $134,186,000, resulting in a deferred income tax asset balance of $46,965,100, which is not offset by a valuation allowance because sufficient tax planning strategies are available to us before expiration of the NOL in 2034.

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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=6907707&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=6907707&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=6907707&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=6907707&loc=d3e32537-109319 + Details
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