Income Taxes

6 Months Ended

Apr. 12, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The income tax provisions reflect tax rates of 32.3% in the second quarter and 30.7% year-to-date, compared with 25.0% and 24.0%, respectively, in fiscal year 2019. The major components of the year-over-year change in tax rates were a decrease in operating earnings before income tax, an increase in the impact of non-deductible compensation for certain officers, an increase in losses from the market performance of insurance products used to fund certain non-qualified retirement plans which are excluded from taxable income, and an increase in non-deductible legal settlements. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual 2020 rate could differ from our current estimates.

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in the U.S. on March 27, 2020. The CARES Act includes several U.S. income tax provisions related to, among other things, modifications to the net interest deduction limitations, and technical amendments regarding the income tax depreciation of qualified improvement property placed in service after December 31, 2017. The CARES Act is not expected to have a material impact on the Company’s financial results.