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Income Taxes
9 Months Ended
Dec. 23, 2017
Income Taxes [Abstract]  
Income Taxes

Note 4 – Income Taxes



In the normal course of business, we provide for uncertain tax positions and the related interest and penalties, and adjust our unrecognized tax benefits and accrued interest and penalties accordingly.  The total amounts of unrecognized tax benefits were $7.8 million and $6.9 million at December 23, 2017 and March 25, 2017, respectively, the majority of which, if recognized, would affect the effective tax rate.  Additionally, we have accrued interest and penalties related to unrecognized tax benefits of approximately $.5 million and $.4 million as of December 23, 2017 and March 25, 2017, respectively.



We file U.S. federal income tax returns and income tax returns in various state jurisdictions.  Our fiscal 2015 through fiscal 2017 U.S. federal tax years and various state tax years remain subject to income tax examinations by tax authorities. 



On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (the “Act”) into legislation.  The new U.S. tax legislation is subject to a number of provisions, including a reduction of the U.S. federal corporate income tax rate from 35% to 21% (effective January 1, 2018).  On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin 118 that provides additional guidance allowing companies to record provisional amounts during a measurement period not to exceed one year from enactment date to account for the impacts of the Act in their financial statements.  We have accounted for the impacts of the Act to the extent a reasonable estimate could be made during the quarter ended December 23, 2017.  We will continue to refine our estimates throughout the measurement period or until the accounting is complete, and the impact of the Act may differ from these estimates, possibly materially, due to, among other things, changes in estimates and assumptions that we have made. 



As a result of the reduction in the U.S. federal corporate income tax rate from 35% to 21% under the Act, we have recorded a provisional reduction to our net deferred tax asset of $5.3 million, and a corresponding increase to income tax expense for the quarter ended December 23, 2017.  The revaluation of our net deferred tax asset is subject to further adjustments during the measurement period due to the complexity of determining our net deferred tax asset as of the enactment date.  Some of the information necessary to determine the accounting impacts of the tax rate change includes finalization of our fiscal 2017 tax return as well as refining the analysis of which existing deferred balances at the enactment date will reverse in fiscal 2018 and which deferred balances will reverse after fiscal 2018.  Further, we recognized an income tax benefit related to the reduction of approximately 300 basis points in our fiscal 2018 estimated annual effective tax rate due to the decrease in the statutory tax rate during the quarter ended December 23, 2017.