Income Taxes

6 Months Ended

Apr. 19, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 5 – Income Taxes:

The Company’s effective tax rate was 29.1% and 34.2% for the second quarter of fiscal years 2024 and 2023, respectively. The effective tax rate for the second quarter of fiscal year 2024 reflects the impact of $367 of tax benefit.

As of April 19, 2024, the Company did not have any valuation allowance against its federal net deferred tax assets. Management reevaluated the need for a valuation allowance at the end of 2022 and determined that some of its California net operating losses (“NOL”) may not be utilized. Therefore, a valuation allowance of $99 has been retained for such portion of the California NOL. As of April 19, 2024, the Company had NOL carryforwards of approximately $0 for federal and $5,000 for state purposes. The state loss carryforwards will expire at various dates through 2040.

Our federal income tax returns are open to audit under the statute of limitations for the fiscal years 2020 through 2022. We are subject to income tax in Texas and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute of limitations for the fiscal years 2019 through 2022.