Income Taxes (Tables)

12 Months Ended

Oct. 03, 2020

Schedule of Components of Income Tax (Benefit) Expense

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



(in thousands)	2020			2019			2018
Current tax provision:
Federal	$	(1,425	)	$	156		$	8,925
State	(65		)	(985		)	(559		)
Foreign	—			(112		)	(91		)
Total current tax (provision) benefit	$	(1,490	)	$	(941	)	$	8,275
Deferred tax provision:
Federal	$	(715	)	$	(5,844	)	$	(6,816	)
State	686			(788		)	1,161
Total deferred tax (provision) benefit	(29		)	(6,632		)	(5,655		)
Income tax (expense) benefit	$	(1,519	)	$	(7,573	)	$	2,620

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the reported income tax (expense) benefit and the amount computed by applying the statutory federal income tax rate is as follows:



(in thousands)	2020			2019			2018
Federal tax expense at statutory rate	$	(2,203	)	$	(6,223	)	$	(6,584	)
(Increase) reduction in income taxes resulting from:
State taxes, net	1,508			(611		)	1,501
Change in uncertain tax positions	—			—			7,606
Share-based compensation	188			(320		)	735
Permanent items	(33		)	(59		)	366
Valuation allowance	(977		)	(1,043		)	(783		)
Tax credits	390			470			470
Return to accrual true-ups	(260		)	115			1,699
Investor tax on non-consolidated affiliate income	(185		)	14			1,734
Tax rate adjustments	—			(32		)	(3,756		)
Other	53			116			(368		)
Income tax (expense) benefit	$	(1,519	)	$	(7,573	)	$	2,620

Schedule of Unrecognized Tax Benefits Roll Forward

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



(in thousands)	2020		2019		2018
Balance, beginning of year	$	—	$	—	$	6,389
Lapses of applicable statute of limitations	—		—		(6,389		)
Balance, end of year	$	—	$	—	$	—

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)	October 3, 2020			September 28, 2019
Deferred tax liabilities
Property, plant and equipment	$	(11,029	)	$	(12,944	)
Other intangible assets	(11,807		)	(12,054		)
Investor tax on non-consolidated affiliate income	(668		)	(495		)
Other assets	(135		)	(93		)
Total deferred tax liabilities	$	(23,639	)	$	(25,586	)
Deferred tax assets
NOL carryforward	$	600		$	601
Accrued expenses	8,419			7,923
Compensation	11,416			12,415
Inventories	1,017			1,023
Unearned income	3,444			3,669
Tax credits	6,307			5,863
Total deferred tax assets	$	31,203		$	31,494
Less: valuation allowance	(3,453		)	(2,476		)
Deferred tax assets less valuation allowance	$	27,750		$	29,018
Net deferred tax assets	$	4,111		$	3,432