INCOME TAXES (Tables)

12 Months Ended

Sep. 28, 2019

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes consists of the following:

	Year Ended
	September 28, 2019		September 29, 2018
	(in thousands)
Current provision (benefit):
Federal	$	260	$	30
State and local	267		320
	527		350
Deferred provision (benefit):
Federal	(931)		(798)
State and local	(187)		(699)
	(1,118)		(1,497)
	$	(591)	$	(1,147)

Schedule of Effective Tax Rate Reconciliation

The effective tax rate differs from the U.S. income tax rate as follows:

	Year Ended
	September 28, 2019		September 29, 2018
	(in thousands)
Provision at Federal statutory rate (21% in 2019 and 24% in 2018)	$	393	$	953
State and local income taxes, net of tax benefits	(160)		—
Tax credits	(1,029)		(789)
Income attributable to non-controlling interest	45		(102)
Changes in tax rates	2		181
Impact of Federal tax reform	—		(1,382)
Change in valuation allowance	81		(43)
Other	77		35
	$	(591)	$	(1,147)

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	September 28, 2019		September 29, 2018
	(in thousands)
Deferred tax assets:
State net operating loss carryforwards	$	4,406	$	4,141
Operating lease deferred credits	422		513
Deferred compensation	313		364
Tax credits	1,253		802
Partnership investments	347		—
Other	—		98
Deferred tax assets, before valuation allowance	6,741		5,918
Valuation allowance	(392)		(311)
Deferred tax assets, net of valuation allowance	6,349		5,607
Deferred tax liabilities:
Depreciation and amortization	(2,049)		(2,080)
Partnership investments	—		(329)
Prepaid expenses	(194)		(210)
Deferred tax liabilities	(2,243)		(2,619)
Net deferred tax assets	$	4,106	$	2,988

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits excluding interest and penalties is as follows:

	September 28, 2019		September 29, 2018
	(in thousands)
Balance at beginning of year	$	110	$	152
Additions based on tax positions taken in current and prior years	407		125
Settlements	(205)		(167)
Lapse in statute of limitations	(109)		—
Decreases based on tax positions taken in prior years	(45)		—
Balance at end of year	$	158	$	110