Note K - Income Taxes

6 Months Ended

Sep. 29, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE K – INCOME TAXES

The income tax provisions for the

twenty-six

periods ended

September 29, 2019

and

September 23, 2018

reflect effective tax rates of

26.5%

and

28.5%,

respectively.

Nathan’s effective tax rates for the

twenty-six

week periods ended

September 29, 2019

and

September 23, 2018

were reduced by

1.9%

and

0.4%,

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

twenty-six

week periods ended

September 29, 2019

and

September 23, 2018,

excess tax benefits of

$228,000

and

$46,000,

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

28.4%

for the fiscal

2020

period and

28.9%

for the fiscal

2019

period.

The amount of unrecognized tax benefits at

September 29, 2019

was

$280,000

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

September 29, 2019,

Nathan’s had

$267,000

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