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Note 12 - Commitments and Contingent Liabilities
 9 Months Ended
Jun. 27, 2021
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

12

COMMITMENTS AND CONTINGENT LIABILITIES

 

Income Taxes

 

Commitments exclude unrecognized tax benefits to be recorded in accordance with FASB ASC Topic 740, Income Taxes. We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters. See Note 8.

 

We file income tax returns with the Internal Revenue Service (“IRS”) and various state tax jurisdictions. From time to time, we are subject to routine audits by those agencies and those audits may result in proposed adjustments. We have considered the alternative interpretations that may be assumed by the various taxing agencies, believe our positions taken regarding our filings are valid, and that adequate tax liabilities have been recorded to resolve such matters. However, the actual outcome cannot be determined with certainty and the difference could be material, either positively or negatively, to the Consolidated Statements of Operations and Comprehensive Income in the periods in which such matters are ultimately determined. We do not believe the final resolution of such matters will be material to our consolidated financial position or cash flows.

 

We have various income tax examinations ongoing and at various stages of completion, but generally our income tax returns have been audited or closed to audit through 2013.

 

Legal Proceedings

 

We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not have a material adverse effect on our Consolidated Financial Statements, taken as a whole.

 

Restructuring Costs and Other

 

We have recognized $1,419,000 and $5,880,000, respectively of expense related to restructuring costs and other for the 13 and 39 weeks ended June 27, 2021 and $2,865,000 and $6,422,000 for the 13 and 39 weeks ended June 28, 2020. The amounts consist of $907,000 and $4,074,000 for June 27, 2021 and $1,484,000 and $2,534,000 for June 28, 2020, respectively of severance expense. We did not have a significant restructuring liability as of June 27, 2021 or June 28, 2020.

 

Subsequent events

 

We have evaluated subsequent events through August 6, 2021. No events have occurred subsequent to June 27, 2021 that require disclosure or recognition in these financial statements.