Income Taxes (Tables)

12 Months Ended

Sep. 26, 2020

Income Tax Disclosure [Abstract]

Provision for Income Tax Expense (Benefit)

The provision for income tax expense (benefit) consists of the following:

	Fiscal Year Ended
	September 26, 2020		September 28, 2019		September 29, 2018
	(in thousands)
Current:
Federal	$	33,775	$	17,048	$	5,728
State	5,063		2,728		2,319
Foreign	(5)		169		91
Total	38,833		19,945		8,138
Deferred:
Federal	(6,019)		4,278		(3,676)
State	(582)		2,380		(1,162)
Foreign	(14)		1		5
Total	(6,615)		6,659		(4,833)
Total	$	32,218	$	26,604	$	3,305

Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows:

	Fiscal Year Ended
	September 26, 2020		September 28, 2019		September 29, 2018
Statutory federal income tax rate	21.0	%	21.0	%	24.5	%
State income taxes, net of federal benefit	2.3		4.3		0.9
Other permanent differences	—		0.7		(0.1)
Adjustment of prior year accruals	(0.2)		(0.6)		—
Credits	(0.6)		(0.9)		(0.8)
Rate change – Tax reform	—		—		(16.9)
Stock based compensation	(1.4)		(1.6)		(5.4)
Other	(0.1)		(0.6)		0.4
Effective income tax rate	21.0	%	22.3	%	2.6	%

Tax Effect of Temporary Differences and Carryforwards which Give Rise to Deferred Tax Assets and Liabilities

The tax effect of temporary differences and carryforwards which give rise to deferred tax assets and liabilities are as follows:

	September 26, 2020				September 28, 2019
	Deferred Tax Assets		Deferred Tax Liabilities		Deferred Tax Assets		Deferred Tax Liabilities
	(in thousands)
Allowance for doubtful accounts	$	6,618	$	—	$	5,029	$	—
Inventory write-downs	8,624		—		8,374		—
Prepaid expenses	—		1,603		—		2,060
Nondeductible reserves	9,484		—		3,968		—
State taxes	505		—		39		—
Employee benefits	12,913		—		5,704		—
Depreciation and amortization	—		85,302		—		77,901
Equity loss	2,047		—		884		—
State net operating loss carryforward	5,652		—		6,579		—
Stock based compensation	4,743		—		3,538		—
State credits	2,732		—		2,819		—
Other	1,774		—		4,774		—
Valuation allowance	(7,124)		—		(7,179)		—
Total	$	47,968	$	86,905	$	34,529	$	79,961

Activity Related to Company's Unrecognized Tax Benefits

The following table, which excludes interest and penalties, summarizes the activity related to the Company’s unrecognized tax benefits for fiscal years ended September 26, 2020 and September 28, 2019:  

	(in thousands)
Balance as of September 29, 2018	$	518
Increases related to prior year tax positions	8
Increases related to current year tax positions	81
Decreases related to prior year tax positions	—
Settlements	(124)
Decreases related to lapse of statute of limitations	—
Balance as of September 28, 2019	$	483
Increases related to prior year tax positions	—
Increases related to current year tax positions	80
Decreases related to prior year tax positions	—
Settlements	—
Decreases related to lapse of statute of limitations	(236)
Balance as of September 26, 2020	$	327