Income Taxes (Tables)

12 Months Ended

Oct. 01, 2023

Income taxes consist of the following in each fiscal year (in thousands):


	2023		2022		2021
Current:
Federal	$	53,229	$	28,934	$	36,051
State	17,274		9,320		11,793
	70,503		38,254		47,844
Deferred:
Federal	(10,642)		5,344		4,440
State	(1,347)		2,513		3,568
	(11,989)		7,857		8,008
Income tax expense from continuing operations	$	58,514	$	46,111	$	55,852

Reconciliation of the Federal Statutory Income Tax Rate to Effective Tax Rate

A reconciliation of the federal statutory income tax rate to our effective tax rate for continuing operations is as follows:


	2023		2022		2021
Income tax expense at federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	5.6	%	5.2	%	5.1	%
Stock compensation tax deficiency (excess tax benefit)	—	%	0.1	%	(0.5)	%
Benefit of tax credits, net of valuation allowance	(0.4)	%	(0.6)	%	(0.1)	%
Adjustment to state tax provision	—	%	—	%	0.7	%
Nondeductible goodwill related to the sale of company-operated restaurants	4.9	%	—	%	—	%
Nondeductible transaction costs	—	%	0.6	%	—	%
Expense (benefit) related to COLIs	(1.0)	%	2.1	%	(1.5)	%
Officers’ compensation limitation	0.6	%	0.4	%	0.5	%
Other, net	0.2	%	(0.3)	%	—	%
	30.9	%	28.5	%	25.2	%

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below (in thousands):


	2023		2022
Deferred tax assets:
Operating and finance lease liabilities	$	372,095	$	351,746
Accrued defined benefit pension and postretirement benefits	18,896		19,090
Deferred income	15,137		13,524
Accrued legal settlements	11,099		15,158
Accrued insurance	8,086		8,339
Share-based compensation	6,139		5,094
Accrued incentive compensation	5,928		2,402
Tax loss and tax credit carryforwards	1,956		4,399
Capitalized research costs	1,943		—
Other reserves and allowances	1,144		1,627
Accrued compensation expense	1,259		1,329
Property and equipment, net of impairment	181		—
Other, net	3,852		2,319
Total gross deferred tax assets	447,715		425,027
Valuation allowance	(1,043)		(1,140)
Total net deferred tax assets	446,672		423,887
Deferred tax liabilities:
Operating and finance lease ROU assets	(380,040)		(361,332)
Intangible assets	(84,969)		(87,165)
Investment basis limitation	(6,191)		(6,010)
Property and equipment, principally due to differences in depreciation	—		(5,656)
Other	(1,701)		(1,408)
Total gross deferred tax liabilities	(472,901)		(461,571)
Net deferred tax (liabilities) assets	$	(26,229)	$	(37,684)