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Income Taxes
6 Months Ended
Oct. 26, 2013
Income Taxes

(10) Income Taxes

The Company recorded an income tax provision of $1,201 on a pre-tax income of $14,430 during the 13 weeks ended October 26, 2013, which represented an effective income tax rate of 8.3%. The Company recorded a $306 tax provision on pre-tax income of $807 during the 13 weeks ended October 27, 2012, which represented an effective income tax rate of 37.9%.

The Company recorded an income tax provision of $16,727 on a pre-tax loss of $(57,066) during the 26 weeks ended October 26, 2013, which represented an effective income tax rate of (29.3)%. The Company recorded a $(21,093) tax benefit on pre-tax loss of $(60,420) during the 26 weeks ended October 27, 2012, which represented an effective income tax rate of 34.9%.

The income tax provisions for the 13 and 26 weeks ended October 26, 2013 do not include income tax benefits on losses incurred by certain domestic operations because the Company recorded valuation allowances against the associated deferred assets. The income tax provision is principally comprised of the result of the activities of profitable jurisdictions and valuation allowances against certain deferred assets at October 26, 2013. The Company’s pre-tax income in profitable jurisdictions, where it records tax provisions, was lower than domestic losses where it maintains valuation allowances and does not record tax benefits, resulting in a negative effective income tax rate for the 26 weeks ended October 26, 2013. The balance sheet presentation of certain tax payable and other items as at October 27, 2012 has been adjusted to conform with the appropriate presentation which is reflected at April 27, 2013.

As of October 26, 2013, the Company had $28,945 of unrecognized tax benefits, all of which, if recognized, would affect the Company’s effective tax rate. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. The Company had $10,705 accrued for interest and penalties, which is included in the $28,945 of unrecognized tax benefits noted above.

The Company is subject to U.S. federal income tax as well as income tax in jurisdictions of each state having an income tax. The Company’s income tax returns are subject to ongoing tax examinations in several jurisdictions in which it operates. The tax years that remain subject to examination are primarily 2007 and forward. Some earlier years remain open for a small minority of states.