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Income Taxes
9 Months Ended
Feb. 27, 2021
Income Taxes [Abstract]  
Income Taxes
Note 11 – Income Taxes
 
The differences
 
between income
 
tax expense
 
(benefit)
 
at the
 
Company’s
 
effective
 
income tax
 
rate and
 
income tax
 
expense at
the statutory federal income tax rate for the thirteen and thirty-nine
 
weeks ended as of February 27, 2021 were as follows:
Thirteen Weeks
 
Ended
Thirty-nine Weeks
 
Ended
February 27, 2021
February 27, 2021
Statutory federal income tax
 
$
2,907
$
543
Enacted net operating loss carryback provision
(6,422)
(6,422)
Domestic manufacturers deduction
1,408
1,408
Other, net
391
391
$
(1,716)
$
(4,080)
On March
 
27, 2020,
 
the Coronavirus
 
Aid, Relief,
 
and Economic
 
Security
 
Act (the
 
“CARES Act”)
 
was enacted.
 
The CARES
Act
 
contains
 
several income
 
tax provisions,
 
as well
 
as other
 
measures,
 
that are
 
intended to
 
assist businesses
 
impacted
 
by
 
the
economic
 
effects
 
of
 
the
 
COVID-19
 
pandemic.
 
The
 
most
 
significant
 
provision
 
of
 
the
 
CARES
 
Act
 
that
 
materially
 
affects
 
our
accounting
 
for
 
income
 
taxes
 
includes
 
a
 
five-year
 
carryback
 
allowance
 
for
 
taxable
 
net
 
operating
 
losses generated
 
in
 
tax
 
years
2018 through 2020, our fiscal years 2019 through 2021.
 
Our financial
 
statements for
 
the thirteen
 
weeks ended
 
February 27,
 
2021 were
 
affected by
 
the changes
 
enacted by
 
the CARES
Act.
 
As a result of the applicable accounting
 
guidance and the provisions enacted by the CARES Act, our
 
income tax provision
for the
 
third quarter
 
of fiscal
 
2021 reflects
 
the carryback
 
of taxable
 
net operating
 
losses generated
 
during periods
 
in which
 
the
statutory
 
federal
 
income
 
tax
 
rate
 
was
21
%
 
to
 
periods
 
in
 
which
 
the
 
statutory
 
federal
 
income
 
tax
 
rate
 
was
35
%.
 
Due
 
to
 
the
difference
 
in statutory
 
rates, we
 
recorded a
 
$
6.4
 
million discrete
 
income tax
 
benefit related
 
to the
 
carryback provisions
 
during
the thirteen
 
weeks ended
 
February 27,
 
2021. Because
 
the net
 
operating losses
 
were carried
 
back to
 
years in
 
which we
 
initially
reduced our taxable income using
 
the Domestic Production Activities Deduction,
 
we recorded a partially offsetting
 
$
1.4
 
million
discrete income tax expense during the thirteen weeks ended February 27,
 
2021 to account for the reduced taxable income.