Note L - Income Taxes

9 Months Ended

Dec. 29, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE L – INCOME TAXES

The effective income tax rates for the thirteen weeks ended December 29, 2024 and December 24, 2023 were 26.0% and 30.2%, respectively. The effective income tax rate for the thirteen weeks ended December 29, 2024 reflected $1,575 of income tax expense recorded on $6,059 of pre-tax income. The effective income tax rate for the thirteen weeks ended December 24, 2023 reflected $1,128 of income tax expense recorded on $3,735 of pre-tax income.

The effective income tax rates for the thirty-nine weeks ended December 29, 2024 and December 24, 2023 were 26.5% and 27.7%, respectively. The effective income tax rate for the thirty-nine weeks ended December 29, 2024 reflected $7,151 of income tax expense recorded on $26,942 of pre-tax income. The effective income tax rate for the thirty-nine weeks ended December 24, 2023 reflected $6,025 of income tax expense recorded on $21,731 of pre-tax income.

The effective income tax rates for the thirteen and thirty-nine weeks ended December 29, 2024 and December 24, 2023 were higher than the United States statutory income tax rate primarily due to state and local taxes, as well as non-deductible compensation under the Internal Revenue Code Section 162(m).

The amount of unrecognized tax benefits included in Other liabilities at December 29, 2024 and March 31, 2024 was $506 and $465, respectively, all of which would impact the Company’s effective tax rate, if recognized. As of December 29, 2024 and March 31, 2024, the Company had approximately $392 and $345, respectively, accrued for the payment of interest and penalties in connection with unrecognized tax benefits.