Note 8 - Income Taxes

12 Months Ended

Apr. 28, 2012

Income Tax Disclosure [Text Block]

8.         INCOME TAXES

The provision (benefit) for income taxes consisted of the following:

	(In thousands)
	Fiscal 2012			Fiscal 2011			Fiscal 2010
Current	$	23,380		$	22,590		$	19,558
Deferred		(477	)		(694	)		(1,026	)
Total	$	22,903		$	21,896		$	18,532

Deferred taxes are recorded to give recognition to temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements.  Valuation allowances are established to reduce the carrying amounts of deferred tax assets when it is deemed, more likely than not, that the benefit of deferred tax assets will not be realized.  Deferred tax assets and liabilities as of April 28, 2012 and April 30, 2011 consisted of the following:

	(In thousands)
	2012		2011
Deferred tax assets:
Accrued expenses and other	$	5,173	$	4,893
Inventory and amortizable assets		450		497
Total deferred tax assets		5,623		5,390
Deferred tax liabilities:
Property		16,186		16,889
Intangibles and other		101		1,556
Total deferred tax liabilities		16,287		18,445
Net deferred tax liabilities	$	10,664	$	13,055
Current deferred tax assets – net	$	3,550	$	1,493
Noncurrent deferred tax liabilities – net	$	14,214	$	14,548

The reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:

	Fiscal 2012			Fiscal 2011			Fiscal 2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		2.7			2.4			2.8
Manufacturing deduction benefit		(3.1	)		(3.0	)		(2.0	)
Other differences		(.4	)		.5			.3
Effective income tax rate		34.2	%		34.9	%		36.1	%

As of April 28, 2012, the gross amount of unrecognized tax benefits was $4.5 million, of which $89,000 was recognized as tax benefit in Fiscal 2012.  If we were to prevail on all uncertain tax positions, the net effect would be to reduce our tax expense by approximately $3.6 million.  A reconciliation of the changes in the gross amount of unrecognized tax benefits, which amounts are included in “Other liabilities” in the accompanying consolidated balance sheets, is as follows:

	(In thousands)
	Fiscal 2012			Fiscal 2011			Fiscal 2010
Beginning balance	$	4,687		$	3,997		$	3,662
Increases due to current period tax positions		408			857			391
Decreases due to lapse of statute of limitations		(547	)		(167	)		(56	)
Ending balance	$	4,548		$	4,687		$	3,997

We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense.  As of April 28, 2012, unrecognized tax benefits included accrued interest of $540,000, of which approximately $20,000 was recognized as a tax benefit in Fiscal 2012.

We file annual income tax returns in the United States and in various state and local jurisdictions.  A number of years may elapse before an uncertain tax position, for which we have unrecognized tax benefits, is resolved.  While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our unrecognized tax benefits reflect the most probable outcome.  We adjust these unrecognized tax benefits, as well as the related interest, in light of changing facts and circumstances.  The resolution of any particular uncertain tax position could require the use of cash and an adjustment to our provision for income taxes in the period of resolution.  Federal income tax returns for fiscal years subsequent to 2007 are subject to examination.  Generally, the income tax returns for the various state jurisdictions are subject to examination for fiscal years ending after fiscal 2007.