Note 9 - Income Taxes

9 Months Ended

Nov. 29, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9.

INCOME TAXES

For the

13

weeks and

39

weeks ended

November 29, 2020,

the Company recorded income tax provisions from continuing operations of

$369

and

$1,557,

respectively, which included discrete income tax provisions of

$44

and

$126,

respectively. For the

13

weeks and

39

weeks ended

December 1, 2019,

the Company recorded income tax provisions from continuing operations of

$1,069

and

$2,895,

respectively.

The Company's effective tax rates for the

13

weeks and

39

weeks ended

November 29, 2020

were

26.3%

and

27.2%,

respectively, compared to

27.6%

and

27.7%,

respectively, in the comparable prior year periods. The effective tax rates for the

13

weeks and

39

weeks ended

November 29, 2020

were higher than the U.S. statutory rate of

21%

primarily due to state and local taxes and discrete income tax provisions for the accrual of interest related to unrecognized tax benefits. The effective tax rates for the

13

weeks and

39

weeks ended

December 1, 2019

were higher than the U.S. statutory rate of

21%

primarily due to state and local taxes, discrete income tax provisions for stock compensation and the accrual of interest related to unrecognized tax benefits.

Notwithstanding the U.S. taxation of the deemed repatriated earnings as a result of the mandatory

one

-time transition tax on the accumulated untaxed earnings of foreign subsidiaries of U.S. shareholders included in the

2017

Tax Cuts and Jobs Act, the Company intends to indefinitely invest approximately

$25

million of undistributed earnings outside of the U.S. If these future earnings are repatriated to the U.S., or if the Company determines such earnings will be remitted in the foreseeable future, the Company

may

be required to accrue U.S. deferred taxes.