INCOME TAXES

12 Months Ended

Sep. 27, 2014

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 27, 2014			September 28, 2013
	(In thousands)
Current provision:
Federal	$	2,029		$	519
State and local		154			188
		2,183			707
Deferred benefit:
Federal		(169	)		983
State and local		(239	)		251
		(408	)		1,234
	$	1,775		$	1,941

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

	Year Ended
	September 27, 2014			September 28, 2013
	(In thousands)
Provision at Federal statutory rate (34% in 2014 and 2013)	$	2,707		$	2,398
State and local income taxes, net of tax benefits		(123	)		265
Tax credits		(655	)		(531	)
Income attributable to non-controlling interest		(432	)		(437	)
Other		278			246
	$	1,775		$	1,941

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 27, 2014			September 28, 2013
	(In thousands)
Long-term deferred tax assets (liabilities):
State net operating loss carryforwards	$	3,855		$	3,665
Operating lease deferred credits		888			974
Depreciation and amortization		(10	)		(464	)
Deferred compensation		1,322			1,524
Partnership investments		(411	)		(460	)
Other		102			95
Total long-term deferred tax assets		5,746			5,334
Valuation allowance		(532	)		(528	)
Total net deferred tax assets	$	5,214		$	4,806

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 $532,000 and $528,000 as of September 27, 2014 and September 28, 2013, 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 27,		September 28,
	2014		2013
	(In thousands)
Balance at beginning of year	$	162	$	209
Reductions due to settlements with taxing authorities		—		(31	)
Reductions as a result of a lapse of the statute of limitations		—		(16	)
Balance at end of year	$	162	$	162

The entire amount of unrecognized tax benefits if recognized would reduce our annual effective tax rate. As of September 27, 2014, the Company accrued approximately $116,000 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. The 2011, 2012 and 2013 fiscal years remain subject to examination by the Internal Revenue Service. The 2010 through 2013 fiscal years generally remain subject to examination by most state and local tax authorities.