Income Taxes

12 Months Ended

Mar. 30, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

The provision for income taxes from continuing operations is detailed below:

(in thousands)			2012		2011		2010
Current tax provision:
	Federal		$	37,341	$	36,384	$	42,919
	State			5,006		4,926		6,112
		Total current provision		42,347		41,310		49,031
Deferred tax (benefit) provision:
	Federal			(1,132)		2,863		(7,234)
	State			(152)		388		(1,030)
		Total deferred (benefit) provision		(1,284)		3,251		(8,264)
		Total income tax provision	$	41,063	$	44,561	$	40,767

Total income tax expense for the years ended March 30, 2012, April 1, 2011, and April 2, 2010 was allocated as follows:

(in thousands)			2012		2011		2010
Tax expense per Consolidated Statements of Operations			$	41,063	$	44,561	$	40,767
Other comprehensive income:
	Unrealized holding gains on equity securities
		recognized for financial reporting purposes		-		-		(1,342)
	Unrealized losses on interest rate swap
		recognized for financial reporting purposes		-		-		339
Total income tax expense (benefit) allocated to
	other comprehensive income			-		-		(1,003)
Benefit for compensation expense for tax purposes
	in excess of amounts recognized for financial
	reporting purposes			(2,057)		(3,273)		(2,516)
Total income tax expense			$	39,006	$	41,288	$	37,248

The difference between income tax computed at the federal statutory rate and the actual tax provision is shown below:

(in thousands)			2012		2011		2010
Income before provision for income taxes			$	115,465	$	119,225	$	110,130
Tax provision at the 35% statutory rate				40,413		41,729		38,546
Increase (decrease) in taxes:
	State income tax, net of federal benefit			3,155		3,454		3,304
	Indefinitely invested earnings of foreign subsidiaries			(3,241)		(1,289)		(1,433)
	Other, net			736		667		350
		Total increase in taxes		650		2,832		2,221
		Total income tax provision	$	41,063	$	44,561	$	40,767
Effective tax rate				35.6%		37.4%		37.0%

The effective rate for the fiscal year ended 2012 was impacted by a reorganization of the Company's non-U.S. global sourcing subsidiaries.  This reorganization increased the responsibilities and contributions of the non-U.S. subsidiaries, proportionally increasing their income and reducing the income of the U.S. subsidiaries.  As the non-U.S. subsidiaries are generally subject to tax at rates lower than the U.S. subsidiaries, changes in the proportion of the Company's taxable earnings originating outside the U.S. favorably impact the effective tax rate.  

As ofMarch 30, 2012 and April 1, 2011, the Company recorded an income tax receivableof $1,488 and an income tax payable of $1,233, respectively, related to current income tax filings.

Deferred income taxes for fiscal years 2012 and 2011 reflect the impact of temporary differences between the financial statement and tax basis of assets and liabilities. The tax effect of temporary differences, which create deferred tax assets and liabilities, as ofMarch 30, 2012 and April 1, 2011 are detailed below:

(in thousands)			2012		2011
Deferred tax assets:
	Deferred compensation		$	35,224	$	31,649
	Original issue discount on 2008 Notes			9,653		13,197
	Net operating loss and tax credit carryforwards			10,591		4,722
	Allowance for doubtful accounts and sales returns			9,319		7,418
	Accrued expenses and incentive compensation			3,313		8,927
	Inventory uniform cost capitalization			4,171		3,725
	Inventory obsolescence			2,693		2,305
	Other			618		733
		Gross deferred tax assets		75,582		72,676
Deferred tax liabilities:
	Excess of tax depreciation over book depreciation			(23,762)		(25,548)
	Interest on 2004 Notes			(17,303)		(17,316)
	Discount on 2008 Notes related to ASC 470-20			(9,362)		(12,822)
	Excess of tax amortization over book amortization			(15,000)		(11,043)
	Other			(998)		(703)
		Gross deferred tax liabilities		(66,425)		(67,432)
Deferred tax assets, net			$	9,157	$	5,244

The deferred tax accounts as ofMarch 30, 2012 and April 1, 2011include current deferred income tax assets of $16,962 and $20,533, respectively, included in Current assets and noncurrent deferred income tax liabilities of $7,805and $15,289, respectively, included in Other noncurrent liabilities.

As ofMarch 30, 2012 and April 1, 2011, the Company had federal and state net operating loss (“NOL”) carryforwards resulting in deferred tax assets of $10,269 and $4,593, respectively. The federal NOL carryforwards result in deferred tax assets as ofMarch 30, 2012and April 1, 2011of $8,102and $3,286, respectively, which expire in2013to2032. The state NOL carryforwards result in deferred tax assets as ofMarch 30, 2012 and April 1, 2011 of $2,167and $1,307, respectively, which expire in 2013 to 2032. Management expects to utilize these NOL carryforwards prior to their expiration.

Management believes it is more likely than not that the deferred tax assets will be realized through the reversal of existing deferred tax liabilities and future taxable income and, therefore, no valuation allowance has been recorded as of March 30, 2012.

The Company has not provided for U.S. income taxes on accumulated and undistributed earnings attributable to foreign operations as the Company intends to permanently reinvest these undistributed earnings. These earnings relate to ongoing operations and were $20,225 and $10,547 as ofMarch 30, 2012and April 1, 2011, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Unrecognized Tax Benefits as of April 2, 2010		$	1,466
	Gross Increases for tax positions of prior years		295
	Lapse of Statute of Limitations		(284)
Unrecognized Tax Benefits as of April 1, 2011			1,477
	Gross Increases for tax positions of prior years		342
	Lapse of Statute of Limitations		(375)
Unrecognized Tax Benefits as of March 30, 2012		$	1,444

The Company classifies interest and penalties related to income tax matters as a component of income tax expense. As of March 30, 2012 and April 1, 2011the Company had $192 and $179of accrued interest related to uncertain tax positions, respectively.

The total amount of unrecognized tax benefits that would affect the effective income tax rate if recognized is $1,141as of March 30, 2012. The unrecognized tax benefit with respect to certain of the Company's tax positions may increase or decrease over the next twelve months; however, management does not expect the change, if any, to have a material effect on the Company's financial position or results of operations within the next twelve months.

The Company files a United States federal income tax return and income tax returns in various states and foreign jurisdictions. With limited exceptions, the Company is no longer subject to income tax examinations for years prior to the fiscal year ended March 31, 2008.

During fiscal year 2012, the IRS completed an examination of the Company's federal income tax return for the fiscal year ended March 27, 2009. As a result, no changes were made to the Company's taxable income.