Note 2 - Interim Financial Presentation

9 Months Ended

Aug. 26, 2017

Notes to Financial Statements

Condensed Financial Statements [Text Block]

2

. Interim Financial Presentation

All intercompany accounts and transactions have been eliminated in the

condensed consolidated financial statements. The results of operations for the

three

and

nine

months ended

August 26, 2017

are

not

necessarily indicative of results for the full fiscal year. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form

10

-K for the year ended

November 26, 2016.

We calculate an anticipated effective tax rate for the year based on our annual estimates of pretax income and use that effective tax rate to record our year-to-date income tax provision

. Any change in annual projections of pretax income could have a significant impact on our effective tax rate for the respective quarter. Our effective tax rates for the

three

and

nine

months ended

August 26, 2017

and

August 27, 2016,

respectively, differ from the federal statutory rate primarily due to the effects of state income taxes and various permanent differences including the favorable impacts of excess tax benefits on stock-based compensation and the Section

199:

Domestic Production Activities Deduction. During the

three

and

nine

months ended

August 26, 2017

our income tax provision includes excess tax benefits on stock-based compensation in the amount of

$227

and

$554,

respectively. During the

three

and

nine

months ended

August 27, 2016,

our income tax provision includes excess tax benefits on stock-based compensation in the amount of

$46

and

$87,

respectively.