INCOME TAXES

9 Months Ended

Jul. 02, 2011

Income Tax Disclosure [Text Block]

10. INCOME TAXES

The income tax provision on income from continuing operations for the 39-week periods ended July 2, 2011 and July 3, 2010 reflect effective tax rates of approximately 12% and 32%, respectively. The Company expects its effective tax rate for its current fiscal year to be significantly lower than the statutory rate as a result of the inclusion of operating income attributable to the non-controlling interests of the VIEs that is not taxable to the Company. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual tax rate could differ from our current estimates.

An audit of the Company’s tax returns for the fiscal years 2008 and 2009 was recently completed by the Internal Revenue Service and did not result in a material adjustment to the Company’s consolidated financial position or results of operations.