Income Taxes

12 Months Ended

Sep. 29, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes consisted of the following:

	Sept. 25, 2011			Sept. 30, 2012		Sept. 29, 2013
	(In thousands)
Current
Federal	$	15,589		$	15,540	$	16,161
State	5,270			4,703		4,698
	20,859			20,243		20,859
Deferred
Federal	(1,573		)	4,851		(35		)
State	(1,130		)	774		(282		)
	(2,703		)	5,625		(317		)
Income tax expense	$	18,156		$	25,868	$	20,542

A reconciliation of the provision for income taxes to amounts computed at the federal statutory rate is as follows:

	Sept. 25, 2011		Sept. 30, 2012		Sept. 29, 2013
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State franchise tax rate, net of federal income tax benefit	5.8		5.8		5.8
Tax credits	(0.7	)	(0.2	)	(0.5	)
Other	0.7		0.1		—
Effective tax rate	40.8	%	40.7	%	40.3	%

Components of deferred income taxes are as follows:

	Sept. 30, 2012			Sept. 29, 2013
	(In thousands)
Deferred income tax assets:
Self-insurance reserves	$	28,684		$	29,883
Deferred compensation	32,531			20,902
Payroll liabilities	32,614			32,068
State franchise tax	1,665			1,608
Inventories	2,371			2,306
Income deferred for book purposes	1,512			1,442
Other, net	3,540			4,179
Total deferred income tax assets	102,917			92,388
Deferred income tax liabilities:
Property and equipment	(30,113		)	(28,991		)
Other assets	(2,340		)	(2,381		)
Total deferred income tax liabilities	(32,453		)	(31,372		)
Net deferred income tax assets	$	70,464		$	61,016

The Company does not have any material tax positions that did not meet a “more-likely-than-not” recognition threshold. As such, the Company has not recorded any liabilities for uncertain tax positions. During fiscal 2013, there have been no material changes to the amount of uncertain tax positions.

The Company recognizes interest and penalties related to income tax deficiencies or assessments by taxing authorities for any underpayment of income taxes separately from income tax expenses as interest expense and other operating expenses, respectively.

For federal and state tax purposes, the Company is subject to review of its fiscal 2010 through fiscal 2013 tax returns.