Income Taxes Level 1 (Notes)

12 Months Ended

Sep. 25, 2011

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

11 INCOME TAXES

Income tax expense (benefit) consists of the following:

(Thousands of Dollars)	2011		2010	2009
Current:
Federal	4,604		8,673	(3,573	)
State	(55	)	833	643
Deferred	(25,630	)	19,116	(79,582	)
	(21,081	)	28,622	(82,512	)
Continuing operations	(21,081	)	28,622	(82,509	)
Discontinued operations	—		—	(3	)
	(21,081	)	28,622	(82,512	)

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)	2011		2010		2009
Computed “expected” income tax expense (benefit)	(35.0	)	35.0		(35.0	)
State income taxes (benefit), net of federal tax expense (benefit)	(2.3	)	4.3		(3.7	)
Net income of associated companies taxed at dividend rates	(0.5	)	(1.4	)	(0.3	)
Domestic production deduction	(0.5	)	(0.8	)	—
Resolution of tax matters	0.5		(3.5	)	—
Impairment of goodwill and other assets	23.6		—		12.2
Valuation allowance	1.0		(0.1	)	(6.1	)
Tax law change	—		4.2		—
Other	0.6		0.6		1.5
	(12.6	)	38.3		(31.4	)

Net deferred income tax liabilities consist of the following components:

(Thousands of Dollars)	September 25 2011		September 26 2010
Deferred income tax liabilities:
Property and equipment	(29,170	)	(29,659	)
Investments	(6,576	)	(26,443	)
Identified intangible assets	(45,472	)	(62,731	)
Long-term debt and interest rate exchange agreements	(997	)	(1,450	)
	(82,215	)	(120,283	)
Deferred income tax assets:
Accrued compensation	7,067		6,462
Allowance for doubtful accounts and losses on loans	1,570		1,745
Pension and postretirement benefits	5,305		5,384
State operating loss carryforwards	23,515		20,897
Accrued expenses	5,024		5,767
Other	2,063		3,124
	44,544		43,379
Valuation allowance	(27,566	)	(23,025	)
Net deferred income tax liabilities	(65,237	)	(99,929	)

Net deferred income tax liabilities are classified as follows:

(Thousands of Dollars)	September 25 2011		September 26 2010
Current assets	967		2,687
Non-current liabilities	(66,204	)	(102,616	)
Net deferred income tax liabilities	(65,237	)	(99,929	)

A reconciliation of 2011 changes in gross unrecognized tax benefits is as follows:

(Thousands of Dollars)	2011
Balance, beginning of year	9,169
Increases in tax positions for prior years	10
Increases in tax positions for the current year	250
Lapse in statute of limitations	(653	)
Settled items	(2,024	)
Balance, end of year	6,752

The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $4,510,000 at September 25, 2011. 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, $1,139,000 at September 25, 2011 and $1,705,000 at September 26, 2010. There were no amounts provided for penalties at September 25, 2011 or September 26, 2010.

At September 25, 2011, we had approximately $757,338,000 of net operating loss carryforwards (“NOLs”) for state tax purposes that expire between 2014 and 2031. Such NOLs result in a deferred income tax asset of $23,515,000 at September 25, 2011, which is substantially all offset by a valuation allowance. The valuation allowance not related to NOLs is $4,068,000 at September 25, 2011 and $2,889,000 at September 26, 2010.