Income Taxes

4 Months Ended

Jan. 20, 2013

Income Tax Expense (Benefit) [Abstract]

Income Taxes

INCOME TAXES

The income tax provisions reflect year-to-date effective tax rates of 30.2% in 2013 and 34.3% in 2012. The reauthorization of the Work Opportunity Tax Credit, which was retroactive to January 1, 2012, resulted in an additional tax credit of $1.3 million in the first quarter of fiscal 2013, for wages paid in fiscal 2012. The final annual tax rate cannot be determined until the end of the fiscal year; therefore, the actual 2013 rate could differ from our current estimates.

At January 20, 2013, our gross unrecognized tax benefits associated with uncertain income tax positions were $0.6 million, which if recognized would favorably impact the effective income tax rate. The gross unrecognized tax benefits decreased $0.3 million from the end of fiscal year 2012 based on the settlement of a state income tax audit. It is reasonably possible that changes to the gross unrecognized tax benefits will be required within the next twelve months due to the possible settlement of state tax audits.

The major jurisdictions in which the Company files income tax returns include the United States and states in which we operate that impose an income tax. The federal statutes of limitations have not expired for fiscal years 2009 and forward. The statutes of limitations for California and Texas, which constitute the Company’s major state tax jurisdictions, have not expired for fiscal years 2001 and 2007, respectively, and forward. Generally, the statutes of limitations for the other state jurisdictions have not expired for fiscal years 2009 and forward.