Income Taxes

6 Months Ended

Feb. 26, 2017

Income Tax Disclosure [Abstract]

Income Taxes

5.

INCOME TAXES:

The Company’s effective tax rate for its fiscal second quarter ended February 26, 2017 was a negative (37.5)% as compared to negative (103.9)% for the quarter ended February 28, 2016. The year-to-date effective tax rate was a negative (37.7)% in the current year as compared to a negative (422.7)% for the prior year. The Company has determined that certain of its activities the Company performs qualify for the Research & Development tax credit (R&D credit) as defined by Internal Revenue Code Section 41. During the fiscal 2016 first quarter the Company recognized tax benefits related to R&D tax credits which were generated in a prior year which lowered the overall effective tax rate. In addition, during the Company’s fiscal 2016 second quarter, the Federal R&D tax credit law was retroactively renewed for calendar year 2015 and also made permanent going forward. Since for calendar year 2015 the law was enacted retroactively, any effects are recognized as a component of income tax expense or benefit from continuing operations in the financial statements in the interim period that the law was enacted, which in this case was the Company’s fiscal 2016 second quarter.