Income Taxes (Tables)

12 Months Ended

Sep. 29, 2018

Schedule of Components of Income Tax (Benefit) Expense

The components of income tax expense were as follows for the fiscal years presented:



(in thousands of dollars)	2018			2017			2016
Current tax provision:
Federal	$	(8,925	)	$	11,705		$	(3,377	)
State	559			1,353			224
Foreign	91			—			—
Total current tax (benefit) provision	$	(8,275	)	$	13,058		$	(3,153	)
Deferred tax provision:
Federal	$	6,816		$	(767	)	$	9,052
State	(1,161		)	(435		)	(95		)
Total deferred tax provision (benefit)	5,655			(1,202		)	8,957
Income tax (benefit) expense	$	(2,620	)	$	11,856		$	5,804

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the reported income tax expense for continuing operations and the amount computed by applying the statutory federal income tax rate as follows:



(in thousands of dollars)	2018			2017			2016
Federal taxes at statutory rate	$	6,584		$	13,073		$	3,439
Increase (reduction) in income taxes resulting from:
State taxes, net	(1,501		)	307			(20		)
Change in uncertain tax positions	(7,606		)	651			821
Share-based compensation	(735		)	(210		)	1,001
Permanent items	(366		)	(701		)	(84		)
Valuation allowance	783			90			27
Tax credits	(470		)	(530		)	(470		)
Return to accrual true-ups	(1,699		)	(646		)	(78		)
Investor tax on non-consolidated affiliate income	(1,734		)	(271		)	582
Tax rate adjustments	3,756			144			535
Other	368			(51		)	51
Income tax expense	$	(2,620	)	$	11,856		$	5,804

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(in thousands of dollars)	2018			2017		2016
Balance, beginning of year	$	6,389		$	6,389	$	6,389
Lapses of applicable statute of limitations	(6,389		)	—		—
Balance, end of year	$	—		$	6,389	$	6,389

Schedule of Deferred Tax Assets and Liabilities

The following table sets forth the sources of and differences between the financial accounting and tax bases of the Company’s assets and liabilities which give rise to the net deferred tax assets at the dates indicated:



(in thousands of dollars)	September 29, 2018			September 30, 2017
Deferred tax liabilities
Property, plant and equipment	$	(4,012	)	$	(2,282	)
Other intangible assets	(11,584		)	(18,030		)
Investor tax on non-consolidated affiliate income	(496		)	(2,230		)
Other assets	(534		)	(527		)
Total deferred tax liabilities	$	(16,626	)	$	(23,069	)
Deferred tax assets
NOL carryforward	$	577		$	550
Accrued expenses	6,280			9,575
Indirect effect of uncertain tax position	—			2,869
Compensation	6,540			14,095
Inventories	1,194			1,576
Unearned income	3,069			4,000
Tax credits	4,638			2,809
Total deferred tax assets	$	22,298		$	35,474
Less: valuation allowance	(1,432		)	(650		)
Deferred tax assets less valuation allowance	$	20,866		$	34,824
Net deferred tax assets	$	4,240		$	11,755