XML 44 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Income Taxes
9 Months Ended
Mar. 29, 2013
Income Tax Disclosure [Abstract]  
Federal and State Income Taxes
Income Taxes

As of June 30, 2012, the Company had a full valuation allowance of $25,646 against its net deferred tax assets. The valuation allowance is reviewed quarterly and is maintained until sufficient positive evidence exists to support its reversal. Based upon this ongoing assessment the Company believes it is appropriate to retain the full valuation allowance, however, a reversal of all or a portion of the valuation allowance could occur during fiscal year 2013 or subsequent years. The required accounting for the reversal could involve significant tax amounts and would result in an increase to net income and EPS in the quarter in which it was deemed appropriate to reverse the valuation allowance.
The Company recorded a tax provision of $680 and a tax benefit of $4,075 for the nine months ended March 29, 2013 and March 30, 2012, respectively. The tax provision of $680 is comprised of state tax expense of $596 and federal Alternative Minimum Tax expense of $84. The tax benefit of $4,075 is comprised of a benefit of $4,227 primarily related to the remeasurement of uncertain tax positions in conjunction with the Company's settlement agreement with the IRS for fiscal years 2003 through 2008, and a benefit of $998 related to the release of valuation allowance due to the acquisition of The Payne Firm, Inc., net of federal Alternative Minimum Tax and state income tax expense, of $1,150
As of March 29, 2013, the recorded liability for uncertain tax positions under the measurement criteria of Accounting Standards Codification Topic 740, Income Taxes, was $265. The Company does not expect the amount of unrecognized tax benefits to materially change within the next twelve months.