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Income Tax
3 Months Ended
May 27, 2017
Income Tax Disclosure [Abstract]  
Income Tax

NOTE 5 — INCOME TAX

The income tax benefit for the first quarter of fiscal 2018 was $1,813,000, compared to $4,054,000 during the same period in the prior fiscal year. The decrease in the income tax benefit is primarily due to the Company’s lower pre-tax loss generated in the first quarter of fiscal 2018 as compared to the first quarter of fiscal 2017. The effective tax rate for the first quarter of fiscal 2018 was 37.8%, compared to 40.2% in the same period during fiscal 2017. The lower effective tax rate for the first quarter of fiscal 2018 primarily relates to deduction limitations for certain executive compensation in the first quarter of fiscal 2017, which increased the effective tax rate for such period.

As of May 27, 2017, the Company had total unrecognized tax benefits of $6,393,000, the majority of which, if recognized, would affect the Company’s effective tax rate. It is reasonably possible a significant portion of the Company’s gross unrecognized tax benefits could decrease within the next twelve months primarily due to settlements with certain taxing jurisdictions.