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Income Taxes | 12 Months Ended
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Sep. 25, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income tax expense (benefit) consists of the following:
(Thousands of Dollars) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | 4,932 |  |  | (2,431) |  |  | 8,779 |
State | 142 |  |  | 3,642 |  |  | (10) |
Deferred | (4,376) |  |  | 6,044 |  |  | (5,796) |
| 698 |  |  | 7,255 |  |  | 2,973 |
Income tax (benefit) expense related to 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 (Loss) Income Before Income Taxes) | 2022 |  | 2021 |  | 2020
Computed “expected” income tax expense | 21.0 |  |  | 21.0 |  |  | 21.0 |
State income tax benefit, net of federal tax benefit | (8.9) |  |  | 5.6 |  |  | 21.7 |
Net income of associated companies | (77.2) |  |  | (1.8) |  |  | (18.3) |
Resolution of tax matters | (32.2) |  |  | 3.2 |  |  | (30.5) |
Remeasurement due to rate changes | (11.2) |  |  | 0.1 |  |  | (31.0) |
Non-deductible expenses | 124.0 |  |  | 0.9 |  |  | 19.4 |
Provision to return adjustment | 70.2 |  |  | — |  |  | — |
Valuation allowance | 11.9 |  |  | (6.0) |  |  | 125.2 |
Wage credit, net addback | (7.5) |  |  | — |  |  | — |
Warrant valuation | (1.9) |  |  | (0.4) |  |  | (7.3) |
Other | — |  |  | — |  |  | 4.4 |
| 88.2 |  |  | 22.6 |  |  | 104.6 |
Net deferred income tax liabilities consist of the following components:
(Thousands of Dollars) | September 25 2022 |  | September 26 2021
Deferred income tax liabilities: |  |  |
Property and equipment | (11,712) |  |  | (13,284) |
Identified intangible assets | (21,649) |  |  | (27,543) |
ASC 842 - Leases DTL | (11,308) |  |  | (15,813) |
Pension and postretirement benefits | — |  |  | (6,346) |
Investments | (26,489) |  |  | (14,823) |
| (71,158) |  |  | (77,809) |
Deferred income tax assets: |  |  |
Allowance for credit losses | 802 |  |  | 237 |
Pension and postretirement benefits | 3,445 |  |  | — |
Long-term debt | 161 |  |  | 716 |
Interest deduction limitation | 4,809 |  |  | — |
Operating loss carryforwards | 26,224 |  |  | 26,999 |
ASC 842 - Leases DTA | 13,112 |  |  | 15,840 |
Accrued compensation | 1,914 |  |  | 6,630 |
Accrued expenses | 1,663 |  |  | 443 |
Other | 2,964 |  |  | 812 |
| 55,094 |  |  | 51,677 |
Valuation allowance | (26,655) |  |  | (27,631) |
Net deferred income tax liabilities | (42,719) |  |  | (53,763) |
All deferred taxes are categorized as non-current. A reconciliation of 2022 and 2021 changes in gross unrecognized tax benefits is as follows:
(Thousands of Dollars) | 2022 |  | 2021
Balance, beginning of year | 18,279 |  |  | 27,008 |
Changes in tax positions for prior years | (307) |  |  | 1,008 |
Increases (decrease) in tax positions for the current year | 1,887 |  |  | (8,940) |
Lapse in statute of limitations | (1,617) |  |  | (797) |
Balance, end of year | 18,242 |  |  | 18,279 |
Approximately $11,942,000 and $10,984,000 of the gross unrecognized tax benefit balances for 2022 and 2021, 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 $3,582,000 at September 25, 2022. The company does not expect that unrecognized tax benefits will fluctuate significantly in the next twelve months. 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, $1,476,000 at September 25, 2022 and $1,393,000 at September 26, 2021. There were no amounts provided for penalties at September 25, 2022 or September 26, 2021. At September 25, 2022 and September 26, 2021, we had a deferred tax asset of $4,809,000 and $0, respectively, related to disallowed interest expense. The company is current undergoing a New York Franchise Tax audit that includes fiscal year periods 2019 through 2021. Certain of the Company's state income tax returns for the year ended September 25, 2016 are open for examination. The Federal and remaining state returns are open beginning with the September 24, 2017 year. At September 25, 2022, we have state tax benefits of approximately $45,137,000 in net operating loss ("NOL") carryforwards that expire between 2022 and 2040. These NOL carryforwards result in a deferred income tax asset of $35,658,000 at September 25, 2022, 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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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