XML 26 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
INCOME TAXES
3 Months Ended
Dec. 29, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

9. INCOME TAXES


The Company’s provision for income taxes consists of federal, state and local taxes in amounts necessary to align the Company’s year-to-date provision for income taxes with the effective tax rate that the Company expects to achieve for the full year. Each quarter, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as deemed necessary.


The income tax provisions for the 13 week periods ended December 29, 2018 and December 30, 2017 reflect effective tax rates of approximately 287.5% and (162.5)%, respectively. The Company’s effective tax rate for the 13 weeks ended December 29, 2018 differed than the statutory rate of 21% as a result of the tax benefits related to the generation of FICA tax credits and operating income attributable to non-controlling interests that is not taxable to the Company. The effective rate for the 13 weeks ended December 30, 2017 differed from the blended statutory rate of 24% as a result of tax benefits related to the generation of FICA tax credits, operating income attributable to non-controlling interests that is not taxable to the Company and the one-time remeasurement of the Company’s deferred tax assets and liabilities for reduced federal tax rate enacted as part of the Tax Cuts and Jobs Act. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from current estimates.


The Company’s overall effective tax rate in the future will be affected by factors such as the utilization of state and local net operating loss carryforwards, the generation of FICA tax credits and the mix of earnings by state taxing jurisdictions as Nevada does not impose a state income tax, as compared to the other major state and local jurisdictions in which the Company has operations.