Income Taxes

3 Months Ended

Dec. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The provision for income taxes includes deferred taxes and is based upon estimated annual effective tax rates in the tax jurisdictions in which we operate. Such annualization of effective tax rates can cause distortion in quarterly tax rates.

Income tax expense related to continuing operations differs from the amounts computed by applying the U.S. federal income tax rate to income before income taxes. The reasons for these differences are as follows:

	13 Weeks Ended
(Percent of Income Before Income Taxes)	December 30 2012		December 25 2011
Computed “expected” income tax expense	35.0		35.0
State income taxes, net of federal tax expense	3.4		3.2
Dividends received deductions and credits	(5.2	)	(2.7	)
Valuation allowance	4.8		2.1
Resolution of tax matters	1.3		1.5
Other	1.7		(2.1	)
	41.0		37.0

In connection with the refinancing of debt under the Chapter 11 Proceedings, we realized substantial cancellation of debt income (“CODI”) for income tax purposes. However, this income was not immediately taxable for U.S. income tax purposes because the CODI resulted from our reorganization under the U.S. Bankruptcy Code. For U.S. income tax reporting purposes, we are required to reduce certain tax attributes, including any net operating loss carryforwards, capital losses, certain tax credit carryforwards, and the tax basis in certain assets and liabilities, including debt, in a total amount equal to the tax gain on the extinguishment of debt.  As a result, in February 2012 we began recognizing additional interest expense deductions for income tax purposes.  The reduction in the basis of certain assets results in reduced  depreciation and amortization expense for income tax purposes beginning in 2013.