7.	INCOME TAXES

The effective income tax rate for the 12 and 24 weeks ended June 17, 2014 was 30.7% and 31.7%, respectively, compared to an effective income tax rate of 35.9% and 32.2%, respectively, for the 12 and 24 weeks ended June 11, 2013. The factors that cause the effective tax rates to vary from the federal statutory rate of 35% include the impact of FICA tip and other credits, partially offset by state income taxes and certain non-deductible expenses. In the second quarter of fiscal 2013, the Company determined that a deferred tax asset of $0.5 million recorded in the fourth quarter of fiscal 2012 relating to local income tax net operating loss carryforwards was not realizable, as the related net operating losses originated in years from which the carryforward period had expired. The Company corrected the deferred tax asset account resulting in a non-cash $0.5 million cumulative adjustment to record additional income tax expense in the second quarter of fiscal 2013, which increased the effective income tax rate for the 12 and 24 weeks ended June 11, 2013. The adjustment did not impact historical cash flows and will not impact the timing of future income tax payments. Prior years’ financial statements were not restated as the impact of these issues was immaterial to previously reported results for any individual prior year and 2012.