Note L - Income Taxes

6 Months Ended

Sep. 28, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE L – INCOME TAXES

The effective income tax rates for the thirteen week periods ended September 28, 2025 and September 29, 2024 were 26.0% and 25.5%, respectively. The effective income tax rate for the thirteen weeks ended September 28, 2025 reflected $1,822 of income tax expense recorded on $7,021 of pre-tax income. The effective income tax rate for the thirteen weeks ended September 29, 2024 reflected $2,069 of income tax expense recorded on $8,099 of pre-tax income.

The effective income tax rate for each of the twenty-six week periods ended September 28, 2025 and September 29, 2024 was 26.7%. The effective income tax rate for the twenty-six weeks ended September 28, 2025 reflected $5,151 of income tax expense recorded on $19,278 of pre-tax income. The effective income tax rate for the twenty-six weeks ended September 29, 2024 reflected $5,576 of income tax expense recorded on $20,883 of pre-tax income.

The effective tax rates are higher than the United States Federal statutory rates 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 September 28, 2025 and March 30, 2025 was $462 and $532, respectively, all of which would impact the Company’s effective rate, if recognized. As of September 28, 2025 and March 30, 2025, the Company had approximately $418 and $395, respectively, of accrued interest and penalties in connection with unrecognized tax benefits.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”). The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, and the business interest expense limitation. The OBBBA did not have a material impact to our provision for income taxes for the thirteen and twenty-six weeks ended September 28, 2025. The Company is continuing to evaluate the full year impact of the OBBBA and, based on our preliminary analysis, we do not anticipate a material effect on our consolidated financial statements for the fiscal year ending March 29, 2026.