Taxes

9 Months Ended

Jan. 25, 2013

Income Tax Policy [Abstract]

Taxes

7.Taxes

The combined federal and state effective income tax rate was 160.8% in the third quarter of fiscal 2013 versus28.6% in the corresponding period a year ago. The tax rate for the third quarter of fiscal 2013 resulted from the tax impact of a corporate conversion implemented during the third quarter of fiscal 2013 whereby the restaurant operations, specifically Bob Evans Farms, Inc., an Ohio corporation, and SWH Corporation, a California corporation, were converted from corporations to limited liability companies and the reduction of book income for the impairment of Mimi's Café. The expected third quarter fiscal 2013 effective tax rate, prior to the impact of the conversion and impairment, was 26.6%.

Our effective income tax rate is evaluated each quarter. The effective income tax rate for the quarter may or may not represent the expected annual effective tax rate for the entire fiscal year and includes the impact of discrete items for the quarter. We expect an annual tax benefit with an annual effective tax rate of(5.2%).The expected fiscal 2013 annual effective tax rate, prior to the impact of the corporate conversion as noted above, and the Mimi's impairment, as discussed in Notes 9 and 10, will be approximately 32.0%.