Note 7 - Income Taxes

9 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7 INCOME TAXES

We recorded income tax expense of $

1,505,000

 related to income before taxes of $

7,677,000

 for the

13

weeks ended

June 30, 2019

, and income tax expenses of $

6,175,000

 related to income before taxes of $

20,739,000

 for the 

39

weeks ended

June 30, 2019

. We recorded income tax expense of $

1,972,000

 related to income of $

6,722,000

 for the

13

 weeks ended 

June 24, 2018

. Including the transitional impact of revaluing tax assets and liabilities, we recorded income tax benefit of $

16,791,000

 related to income of $

25,820,000

 for the

39

weeks ended

June 24, 2018

.

The effective income tax rate for the

13

 and

39

weeks ended

June 30, 2019

 was 

19.6%

 and 

29.8%

, respectively. The effective income tax rate for the

13

 and

39

weeks ended

June 24, 2018

 was

29.3%

 and negative

65.0%

, respectively.

The primary differences between these rates and the U.S. federal statutory rate of

21%

are due to the effect of state taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, mark-to-market adjustments to value the Warrants, and the transitional impact of revaluing tax assets and liabilities. 

We file a consolidated federal tax return, as well as combined and separate tax returns in approximately

27

state and local jurisdictions. We do

not

currently have any federal tax examinations in progress. California is the only state with an income tax examination currently in progress. Our income tax returns have generally been audited or closed to audit through

2014.

See Note

11

for a discussion of our tax audits.

At

September 30, 2018,

we had approximately

$63,048,000

of state net operating loss tax benefits. The Company consumed its federal net operating losses in the year ended

September 30, 2018.