INCOME TAXES

12 Months Ended

Sep. 28, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

13. INCOME TAXES

The provision for income taxes attributable to continuing operations consists of the following:

	Year Ended
	September 28, 2013		September 29, 2012
	(In thousands)
Current provision:
Federal	$	518	$	469
State and local		188		251
		706		720
Deferred provision:
Federal		984		3,140
State and local		251		(847	)
		1,235		2,293
	$	1,941	$	3,013

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

	Year Ended
	September 28, 2013			September 29, 2012
	(In thousands)
Provision at Federal statutory rate (34% in 2013 and 2012)	$	2,398		$	3,555
State and local income taxes, net of tax benefits		265			312
Tax credits		(531	)		(565	)
Income attributable to non-controlling interest		(437	)		(576	)
Other		246			287
	$	1,941		$	3,013

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	September 28, 2013			September 29, 2012
	(In thousands)
Long-term deferred tax assets (liabilities):
State net operating loss carryforwards	$	3,665		$	3,357
Operating lease deferred credits		974			1,069
Depreciation and amortization		(464	)		(358	)
Deferred compensation		1,524			1,431
Partnership investments		(460	)		(413	)
Other		95			108
Total long-term deferred tax assets		5,334			5,194
Valuation allowance		(528	)		(234	)
Total net deferred tax assets	$	4,806		$	4,960

In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The deferred tax valuation allowance of $528,000 and $234,000 as of September 28, 2013 and September 29, 2012, respectively, was attributable to state and local net operating loss carryforwards which are not realizable on a more-likely-than-not basis.

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

	September 28, 2013			September 29, 2012
	(In thousands)
Balance at beginning of year	$	209		$	209
Reductions due to settlements with taxing authorities		(31	)		—
Reductions as a result of a lapse of the statute of limitations		(16	)		—
Interest accrued during the current year		—			—
Balance at end of year	$	162		$	209

The entire amount of unrecognized tax benefits if recognized would reduce our annual effective tax rate. As of September 28, 2013, the Company accrued approximately $96,000 of interest and penalties. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. Inherent uncertainties exist in estimates of tax contingencies due to changes in tax law, both legislated and concluded through the various jurisdictions’ tax court systems.

The Company files tax returns in the U.S. and various state and local jurisdictions with varying statutes of limitations. An examination of the Company’s Federal tax returns for the fiscal years 2008 and 2009 was recently completed by the Internal Revenue Service and did not result in a material adjustment to the Company’s consolidated financial position or results of operations. The 2010, 2011 and 2012 fiscal years remain subject to examination by the Internal Revenue Service. The 2009 through 2012 fiscal years generally remain subject to examination by most state and local tax authorities.