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Note 12 - Income Taxes | 12 Months Ended
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Sep. 27, 2020
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 12 INCOME TAXES Income tax expense (benefit) consists of the following:
(Thousands of Dollars) |  | 2020 |  |  | 2019 |  |  | 2018 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | 8,779 |  |  | 8,763 |  |  | 275 |
State |  | (11 | ) |  | 1,171 |  |  | 875 |
Deferred |  | (4,665 | ) |  | (2,003 | ) |  | (17,378 | )
|  |  | 4,104 |  |  |  | 7,931 |  |  |  | (16,228 | )
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) |  | 2020 |  |  | 2019 |  |  | 2018 |
Computed “expected” income tax expense (benefit) |  | 21.0 |  |  | 21.0 |  |  | 24.7 |
State income tax expense, net of federal tax impact |  | 21.7 |  |  | 1.3 |  |  | 2.6 |
Net income of associated companies taxed at dividend rates |  | (18.3 | ) |  | (3.9 | ) |  | (5.1 | )
Resolution of tax matters |  | (30.5 | ) |  | 1.7 |  |  | (8.4 | )
Remeasurement due to rate changes |  | 24.0 |  |  | — |  |  | — |
Non-deductible expenses |  | 19.4 |  |  | 3.4 |  |  | 2.9 |
Valuation allowance |  | 110.0 |  |  | 10.8 |  |  | 9.9 |
Warrant valuation |  | (7.3 | ) |  | (0.6 | ) |  | 0.2 |
Revaluation of deferred income taxes due to law charges |  | — |  |  | — |  |  | (79.1 | )
Other |  | 4.4 |  |  | (0.4 | ) |  | (0.4 | )
|  |  | 144.4 |  |  |  | 33.3 |  |  |  | (52.7 | )
Net deferred income tax liabilities consist of the following components:
|  | September 27 |  |  | September 29 |
(Thousands of Dollars) |  | 2020 |  |  | 2019 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Property and equipment |  |  | (18,646 | ) |  |  | (14,424 | )
Identified intangible assets |  |  | (16,765 | ) |  |  | (15,358 | )
ASC 842 - Leases DTL |  |  | (18,669 | ) |  |  | — |
Investments |  |  | (6,154 | ) |  |  | (3,164 | )
|  |  | (60,234 | ) |  |  | (32,946 | )
Deferred income tax assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  |  | 1,733 |  |  |  | 1,279 |
Pension and postretirement benefits |  |  | 7,075 |  |  |  | 2,048 |
Long-term debt |  |  | 350 |  |  |  | (9,219 | )
Interest deduction limitation |  |  | 5,383 |  |  |  | 4,255 |
Operating loss carryforwards |  |  | 28,240 |  |  |  | 41,610 |
ASC 842 - Leases DTA |  |  | 18,675 |  |  |  | — |
Accrued compensation |  |  | 13,142 |  |  |  | 1,810 |
Accrued expenses |  |  | 1,673 |  |  |  | 426 |
Other |  |  | 430 |  |  |  | 844 |
|  |  | 76,701 |  |  |  | 43,053 |
Valuation allowance |  |  | (31,675 | ) |  |  | (39,913 | )
Net deferred income tax liabilities |  |  | (15,208 | ) |  |  | (29,806 | )
All deferred taxes are categorized as non-current. A reconciliation of 2020 and 2019 changes in gross unrecognized tax benefits is as follows:
(Thousands of Dollars) |  | 2020 |  |  | 2019 |
Balance, beginning of year |  |  | 18,252 |  |  |  | 16,104 |
Increases (decreases) in tax positions for prior years |  |  | (331 | ) |  |  | 33 |
Increases in tax positions for the current year |  |  | 9,825 |  |  |  | 2,472 |
Lapse in statute of limitations |  |  | (738 | ) |  |  | (357 | )
Balance, end of year |  |  | 27,008 |  |  |  | 18,252 |
Approximately $10,319,000 and $10,665,000 of the gross unrecognized tax benefit balances for 2020 and 2019, 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 $12,518,000 at September 27, 2020. 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, $1,000,000 at September 27, 2020 and $848,000 at September 29, 2019. There were no amounts provided for penalties at September 27, 2020 or September 29, 2019. At September 27, 2020, we had a deferred tax asset of $5,383,000 related to disallowed interest expense. No significant income tax audits are currently in progress and the Company has not received any notices of intent to audit. Certain of the Company's state income tax returns for the year ended September 29, 2014 are open for examination. The Federal and remaining state returns are open beginning with the September 28, 2015 year. At September 27, 2020, we have state tax benefits of approximately $46,066,000 in net operating loss ("NOL") carryforwards that expire between 2021 and 2040. These NOL carryforwards result in a deferred income tax asset of $36,392,000 at September 27, 2020, a portion of which is offset by a valuation allowance.

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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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