Income Taxes

3 Months Ended

Jun. 18, 2011

Income Taxes

Income Tax Disclosure [Text Block]

Note 9 – Income Taxes

For the second quarter 2011 and 2010, our tax expense was $6.6 million and $7.3 million, respectively.  During year-to-date 2011 and 2010, our tax expense was $11.5 million and $12.6 million, respectively.  

The provision for income taxes reflects the Company’s estimate of the effective rate expected to be applicable for the full fiscal year, adjusted for any discrete events, which are reported in the period that they occur.  This estimate is re-evaluated each quarter based on the Company’s estimated tax expense for the full fiscal year.  During the second quarter 2010, the Company filed reports with various taxingauthorities which resulted in the refunds of tax payments.  The effect of these discrete events in the second quarter was $0.1 million. For both the second quarter and year-to-date periods of 2011, the effective tax rate was 39.5% as compared to 40.4% for each of the second quarter and year-to-date periods of 2010.

The total amount of unrecognized tax benefits as of the end of the second quarter 2011 was $1.9 million.  The net increase in unrecognized tax benefits of $0.1 million since March 26, 2011 is due to the increase in unrecognized tax benefits as a result of tax positions taken in prior periods.  The total amount of tax benefits that if recognized would impact the effective tax rate was $0.4 million at the end of the second quarter 2011.  We recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense.  At the end of the second quarter 2011, we had approximately $0.1 million for the payment of interest and penalties accrued.

We do not expect our unrecognized tax benefits to change significantly over the next 12 months. 

The Company or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and local jurisdictions.  With few exceptions, we are no longer subject to U.S. federal, state or local examinations by tax authorities for years 2006 and prior.