Income Taxes (Tables)
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12 Months Ended |
Sep. 26, 2020 |
Income Tax Disclosure [Abstract] |
|
Provision for Income Tax Expense (Benefit) |
The provision for income tax expense (benefit) consists of the following:
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Fiscal Year Ended |
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September 26, 2020 |
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September 28, 2019 |
|
September 29, 2018 |
|
(in thousands) |
Current: |
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Federal |
$ |
33,775 |
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|
$ |
17,048 |
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|
$ |
5,728 |
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State |
5,063 |
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|
2,728 |
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|
2,319 |
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Foreign |
(5) |
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|
169 |
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|
91 |
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Total |
38,833 |
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|
19,945 |
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|
8,138 |
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Deferred: |
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|
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Federal |
(6,019) |
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|
4,278 |
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|
(3,676) |
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State |
(582) |
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|
2,380 |
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|
(1,162) |
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Foreign |
(14) |
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|
1 |
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|
5 |
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Total |
(6,615) |
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|
6,659 |
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|
(4,833) |
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Total |
$ |
32,218 |
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$ |
26,604 |
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|
$ |
3,305 |
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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:
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Fiscal Year Ended |
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September 26, 2020 |
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September 28, 2019 |
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September 29, 2018 |
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Statutory federal income tax rate |
21.0 |
% |
|
21.0 |
% |
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24.5 |
% |
State income taxes, net of federal benefit |
2.3 |
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|
4.3 |
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|
0.9 |
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Other permanent differences |
— |
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|
0.7 |
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|
(0.1) |
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Adjustment of prior year accruals |
(0.2) |
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|
(0.6) |
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|
— |
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Credits |
(0.6) |
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(0.9) |
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|
(0.8) |
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Rate change – Tax reform |
— |
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— |
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|
(16.9) |
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Stock based compensation |
(1.4) |
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(1.6) |
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|
(5.4) |
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Other |
(0.1) |
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(0.6) |
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0.4 |
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Effective income tax rate |
21.0 |
% |
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22.3 |
% |
|
2.6 |
% |
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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:
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September 26, 2020 |
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September 28, 2019 |
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Deferred Tax Assets |
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Deferred Tax Liabilities |
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Deferred Tax Assets |
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Deferred Tax Liabilities |
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(in thousands) |
Allowance for doubtful accounts |
$ |
6,618 |
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|
$ |
— |
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$ |
5,029 |
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$ |
— |
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Inventory write-downs |
8,624 |
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— |
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|
8,374 |
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— |
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Prepaid expenses |
— |
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|
1,603 |
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— |
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|
2,060 |
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Nondeductible reserves |
9,484 |
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— |
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|
3,968 |
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— |
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State taxes |
505 |
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— |
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|
39 |
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— |
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Employee benefits |
12,913 |
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— |
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|
5,704 |
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— |
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Depreciation and amortization |
— |
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|
85,302 |
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— |
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|
77,901 |
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Equity loss |
2,047 |
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— |
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|
884 |
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— |
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State net operating loss carryforward |
5,652 |
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— |
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|
6,579 |
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— |
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Stock based compensation |
4,743 |
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— |
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3,538 |
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— |
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State credits |
2,732 |
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— |
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2,819 |
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— |
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Other |
1,774 |
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— |
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4,774 |
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— |
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Valuation allowance |
(7,124) |
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— |
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(7,179) |
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— |
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Total |
$ |
47,968 |
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$ |
86,905 |
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$ |
34,529 |
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$ |
79,961 |
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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 26, 2020 and September 28, 2019:
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(in thousands) |
Balance as of September 29, 2018 |
$ |
518 |
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Increases related to prior year tax positions |
8 |
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Increases related to current year tax positions |
81 |
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Decreases related to prior year tax positions |
— |
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Settlements |
(124) |
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Decreases related to lapse of statute of limitations |
— |
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Balance as of September 28, 2019 |
$ |
483 |
|
Increases related to prior year tax positions |
— |
|
Increases related to current year tax positions |
80 |
|
Decreases related to prior year tax positions |
— |
|
Settlements |
— |
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Decreases related to lapse of statute of limitations |
(236) |
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Balance as of September 26, 2020 |
$ |
327 |
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