Income Taxes

3 Months Ended

Sep. 29, 2012

Income Taxes

8. Income Taxes

Income tax expense for the first quarter of fiscal 2013 and the first quarter of fiscal 2012 differed from the amounts computed by applying the U.S. Federal income tax rate of 35% in fiscal 2013 and fiscal 2012, respectively, to earnings before income taxes as a result of the following:

	First Quarter
	Fiscal 2013			Fiscal 2012
Computed “expected” tax expense	$	3,491		$	3,922
State income tax expense, net of federal income tax benefit		398			423
Other, net		(50	)		(30	)
Total expense	$	3,839		$	4,315

Management is required to estimate the annual effective tax rate based upon its forecast of annual pre-tax earnings. To the extent the actual pre-tax results or anticipated permanent tax differences for the year differ from forecasted estimates applied at the end of the most recent interim period, the actual tax rate recognized in fiscal 2013 could be materially different from the forecasted rate as of the end of the first quarter of fiscal 2013.

Income tax expense for the first quarter of fiscal 2013 and the first quarter of fiscal 2012 were calculated using estimated annual effective income tax rates of 38.5%.

FASB ASC 740-10 (the overall Subtopic of topic 740 on income taxes) prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. During the first quarter of fiscal 2013, there were no changes in evaluations made under FASB ASC 740-10. There were no reserves for uncertain tax positions existing at the end of the first quarter of fiscal 2013 or at the end of fiscal 2012.