Note K - Income Taxes

3 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE K – INCOME TAXES      

The income tax provisions for the

thirteen

-week periods ended

June 30, 2019

and

June 24, 2018

reflect effective tax rates of

25.3%

and

26.4%,

respectively.

Nathan’s effective tax rates for the

thirteen

-week periods ended

June 30, 2019

and

June 24, 2018

were reduced by

3.2%

and

1.0%,

respectively, as a result of the tax benefits associated with stock compensation. For the

thirteen

-week periods ended

June 30, 2019

and

June 24, 2018,

excess tax benefits of

$228,000

and

$63,000,

respectively, were reflected in the Consolidated Statements of Earnings as a reduction in determining the provision for income taxes. Nathan’s effective tax rates without these adjustments would have been

28.5%

for the fiscal

2020

period and

27.4%

for the fiscal

2019

period.

The amount of unrecognized tax benefits at

June 30, 2019

was

$269,000

all of which would impact Nathan’s effective tax rate, if recognized. As of

June 30, 2019,

Nathan’s had

$257,000

of accrued interest and penalties in connection with unrecognized tax benefits.