Income Taxes (Tables)

12 Months Ended

Sep. 29, 2018

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense (Benefit)

The provision for income tax expense (benefit) consists of the following:

	Fiscal Year Ended
	September 29, 2018			September 30, 2017			September 24, 2016
	(in thousands)
Current:
Federal	$	5,728		$	32,755		$	18,592
State	2,319			3,034			2,140
Foreign	91			121			110
Total	8,138			35,910			20,842
Deferred:
Federal	(3,676		)	11,227			2,796
State	(1,162		)	(1,038		)	463
Foreign	5			600			(48		)
Total	(4,833		)	10,789			3,211
Total	$	3,305		$	46,699		$	24,053

Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:

	Fiscal Year Ended
	September 29, 2018		September 30, 2017		September 24, 2016
Statutory federal income tax rate	24.5	%	35.0	%	35.0	%
State income taxes, net of federal benefit	0.9		2.4		2.1
Other permanent differences	(0.1	)	0.3		(1.6	)
Adjustment of prior year accruals	—		(0.3	)	(0.6	)
Credits	(0.8	)	(0.6	)	(1.0	)
Rate change - Tax reform	(16.9	)	—		—
Stock based compensation	(5.4	)	—		—
Other	0.4		0.1		0.6
Effective income tax rate (benefit)	2.6	%	36.9	%	34.5	%

Tax Effect of Temporary Differences and Carryforwards which Give Rise to Deferred Tax Assets and Liabilities

The tax effect of temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows:

	September 29, 2018					September 30, 2017
	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
	(in thousands)
Allowance for doubtful accounts	$	5,613		$	—	$	7,790		$	—
Inventory write-downs	6,819			—		10,406			—
Prepaid expenses	—			1,408		—			1,740
Nondeductible reserves	983			—		1,485			—
State taxes	74			—		276			—
Employee benefits	5,578			—		10,007			—
Depreciation and amortization	—			65,983		—			84,059
Equity loss	2,053			—		4,243			—
State net operating loss carryforward	6,722			—		5,182			—
Stock based compensation	2,541			—		3,097			—
State credits	2,742			—		2,403			—
Other	4,240			—		5,768			—
Valuation allowance	(6,809		)	—		(6,527		)	—
Total	$	30,556		$	67,391	$	44,130		$	85,799

Activity Related to Company's Unrecognized Tax Benefits

The following table, which excludes interest and penalties, summarizes the activity related to the Company’s unrecognized tax benefits for fiscal years ended September 29, 2018 and September 30, 2017 (in thousands):

Balance as of Balance as of September 24, 2016	$	254
Increases related to prior year tax positions	4
Increases related to current year tax positions	67
Decreases related to prior year tax positions	—
Settlements	—
Decreases related to lapse of statute of limitations	—
Balance as of Balance as of September 30, 2017	$	325
Increases related to prior year tax positions	138
Increases related to current year tax positions	83
Decreases related to prior year tax positions	(28		)
Settlements	—
Decreases related to lapse of statute of limitations	—
Balance as of Balance as of September 29, 2018	$	518