XML 37 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
Income Taxes
9 Months Ended
Jun. 28, 2015
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
INCOME TAXES

We recorded income tax expense of $2,141,000 related to income before taxes of $4,276,000 for the 13 weeks ended June 28, 2015. For the 13 weeks ended June 29, 2014, we recorded $4,882,000 in income tax benefit related to a loss before income taxes of $14,393,000. The effective income tax rates for the 13 weeks ended June 28, 2015 and June 29, 2014 were 50.1% and 33.9%, respectively. The increase in the effective income tax rate for the 13 weeks ended June 28, 2015 is primarily due to a mark-to-market adjustment to value the Warrants issued in connection with our 2014 Refinancing. We recorded income tax expense of $9,353,000 related to income before taxes of $23,537,000 for the 39 weeks ended June 28, 2015. For the 39 weeks ended June 29,2014, we recorded $3,995,000 in income tax expenses related to income before taxes of $8,290,000. The effective income tax rates for the 39 weeks ended June 28, 2015 and June 29, 2014 were 39.7% and 48.2%, respectively. The primary differences between these rates and the U.S. federal statutory rate of 35% are due to the effect of state taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, and mark-to-market adjustments to value the Warrants.

We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 state and local jurisdictions. We have various income tax examinations ongoing which are at different stages of completion, but generally our income tax returns have been audited or closed to audit through 2009. See Note 10 for a discussion of our tax audits.

State cash tax payments of $173,000 were made during the 39 weeks ended June 28, 2015, of which $1,000 were made during the 13 weeks ended June 28, 2015. State cash tax refunds of $236,000 relating to carrybacks of prior year losses were received during the 39 weeks ended June 28, 2015, all of which were received during the 13 weeks ended June 28, 2015. Due to our federal and state net operating loss carryforwards and based on historical levels of performance, we do not expect any significant income tax payments in 2015, 2016 or 2017.