| Income Tax Disclosure [Text Block] |
(10) Income Taxes
The components of the provision for income taxes are as follows:
| |
|
Year Ended
|
|
| |
|
October 3,
|
|
|
September 27,
|
|
|
September 28,
|
|
|
(Dollars in thousands)
|
|
2026
|
|
|
2025
|
|
|
2024
|
|
|
Provision for income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
8,246 |
|
|
$ |
12,257 |
|
|
$ |
1,425 |
|
|
State
|
|
|
719 |
|
|
|
1,276 |
|
|
|
362 |
|
| |
|
|
8,965 |
|
|
|
13,533 |
|
|
|
1,787 |
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(120 |
) |
|
|
(782 |
) |
|
|
3,843 |
|
|
State
|
|
|
(103 |
) |
|
|
34 |
|
|
|
352 |
|
| |
|
|
(223 |
) |
|
|
(748 |
) |
|
|
4,195 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$ |
8,742 |
|
|
$ |
12,785 |
|
|
$ |
5,982 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective income tax rate
|
|
|
22.8 |
% |
|
|
23.8 |
% |
|
|
23.7 |
% |
The reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes is as follows:
| |
|
Year Ended
|
|
|
(Dollars in thousands)
|
|
October 3, 2026
|
|
|
September 27, 2025
|
|
|
September 28, 2024
|
|
|
Provision for income taxes at federal statutory rate
|
|
$ |
8,041 |
|
|
|
21.0 |
% |
|
$ |
11,299 |
|
|
|
21.0 |
% |
|
$ |
5,310 |
|
|
|
21.0 |
% |
|
State and local income taxes, net of federal tax benefit (1)
|
|
|
458 |
|
|
|
1.2 |
|
|
|
1,043 |
|
|
|
1.9 |
|
|
|
664 |
|
|
|
2.6 |
|
|
Effect of cross-border tax laws
|
|
|
(7 |
) |
|
|
(0.0 |
) |
|
|
(19 |
) |
|
|
(0.0 |
) |
|
|
- |
|
|
|
- |
|
|
Nontaxable or nondeductible items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Officers life insurance
|
|
|
(77 |
) |
|
|
(0.2 |
) |
|
|
(87 |
) |
|
|
(0.2 |
) |
|
|
(314 |
) |
|
|
(1.2 |
) |
|
Other
|
|
|
339 |
|
|
|
0.8 |
|
|
|
578 |
|
|
|
1.1 |
|
|
|
282 |
|
|
|
1.1 |
|
|
Tax credits
|
|
|
- |
|
|
|
- |
|
|
|
(3 |
) |
|
|
(0.0 |
) |
|
|
(11 |
) |
|
|
(0.0 |
) |
|
Other adjustments
|
|
|
(12 |
) |
|
|
(0.0 |
) |
|
|
(26 |
) |
|
|
(0.0 |
) |
|
|
51 |
|
|
|
0.2 |
|
|
Provision for income taxes
|
|
$ |
8,742 |
|
|
|
22.8 |
% |
|
$ |
12,785 |
|
|
|
23.8 |
% |
|
$ |
5,982 |
|
|
|
23.7 |
% |
| |
(1)
|
State taxes in Florida and Texas comprise the majority (greater than 50%) of the tax effect in this category in 2026. State taxes in Florida and Pennsylvania comprise the majority of the tax effect in this category in 2025. State taxes in North Carolina and Florida comprise the majority of the tax effect in this category in 2024.
|
The amounts of income taxes paid, net of amounts refunded, are as follows:
| |
|
Year Ended
|
|
| |
|
October 3,
|
|
|
September 27,
|
|
|
September 28,
|
|
|
(In thousands)
|
|
2026
|
|
|
2025
|
|
|
2024
|
|
|
Federal
|
|
$ |
9,797 |
|
|
$ |
9,700 |
|
|
$ |
2,960 |
|
|
State:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
239 |
|
|
|
440 |
|
|
|
254 |
|
|
Other
|
|
|
478 |
|
|
|
635 |
|
|
|
118 |
|
|
Income taxes paid, net of amounts refunded
|
|
$ |
10,514 |
|
|
$ |
10,775 |
|
|
$ |
3,332 |
|
The components of deferred tax assets and liabilities are as follows:
| |
|
October 3,
|
|
|
September 27,
|
|
|
(In thousands)
|
|
2026
|
|
|
2025
|
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
|
Defined benefit plans
|
|
$ |
2,667 |
|
|
$ |
2,682 |
|
|
Accrued expenses and asset reserves
|
|
|
1,766 |
|
|
|
2,342 |
|
|
Stock-based compensation
|
|
|
1,808 |
|
|
|
1,650 |
|
|
Research and experimental capitalization
|
|
|
22 |
|
|
|
335 |
|
|
Operating lease liabilities
|
|
|
552 |
|
|
|
873 |
|
|
State net operating loss carryforwards and tax credits
|
|
|
44 |
|
|
|
3 |
|
|
Valuation allowance
|
|
|
(3 |
) |
|
|
(112 |
) |
|
Deferred tax assets
|
|
|
6,856 |
|
|
|
7,773 |
|
| |
|
|
|
|
|
|
|
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
|
Plant and equipment
|
|
|
(14,047 |
) |
|
|
(15,374 |
) |
|
Prepaid insurance
|
|
|
(1,160 |
) |
|
|
(1,112 |
) |
|
Right-of-use assets
|
|
|
(554 |
) |
|
|
(881 |
) |
|
Goodwill
|
|
|
(2,067 |
) |
|
|
(1,474 |
) |
|
Deferred tax liabilities
|
|
|
(17,828 |
) |
|
|
(18,841 |
) |
|
Net deferred tax liability
|
|
$ |
(10,972 |
) |
|
$ |
(11,068 |
) |
As of October 3, 2026 and September 27, 2025, we recorded net deferred tax liabilities (net of valuation allowances) of $11.0 million and $11.1 million, respectively, in other liabilities on our consolidated balance sheet. We have $5.3 million of state NOLs that effectively expire in 2031 due to state tax rate reductions.
The realization of our deferred tax assets is entirely dependent upon our ability to generate future taxable income in applicable jurisdictions. GAAP requires that we periodically assess the need to establish a reserve against our deferred tax assets to the extent we no longer believe it is more likely than not that they will be fully realized. As of October 3, 2026, we recorded a valuation allowance of $3,000 pertaining to a deferred tax asset that was not expected to be utilized. The valuation allowance is subject to periodic review and adjustment based on changes in facts and circumstances. The $109,000 reduction in the valuation allowance reflects the expected utilization of a state deferred tax asset.
As of October 3, 2026, we had no material, known tax exposures that required the establishment of contingency reserves for uncertain tax positions.
We classify interest and penalties related to unrecognized tax benefits as part of income tax expense. There were no interest and penalties related to unrecognized tax benefits incurred during 2026, 2025 and 2024.
We file U.S. federal income tax returns as well as state and local income tax returns in various jurisdictions. Federal and various state tax returns filed subsequent to 2021 remain subject to examination.
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