Note 8 - Income Taxes

12 Months Ended

Apr. 27, 2013

Income Tax Disclosure [Text Block]

Income Tax Disclosure [Text Block]

8. INCOME TAXES

The provision (benefit) for income taxes consisted of the following:

	(In thousands)
	Fiscal 2013		Fiscal 2012			Fiscal 2011
Current	$	23,359	$	23,380		$	22,590
Deferred		172		(477	)		(694	)
Total	$	23,531	$	22,903		$	21,896

Deferred taxes are recorded to give recognition to temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. Valuation allowances are established to reduce the carrying amounts of deferred tax assets when it is deemed, more likely than not, that the benefit of deferred tax assets will not be realized. Deferred tax assets and liabilities as of April 27, 2013 and April 28, 2012 consisted of the following:

	(In thousands)
	2013		2012
Deferred tax assets:
Accrued expenses and other	$	5,241	$	5,173
Inventory and amortizable assets		355		450
Total deferred tax assets		5,596		5,623
Deferred tax liabilities:
Property		16,159		16,186
Intangibles and other		99		101
Total deferred tax liabilities		16,258		16,287
Net deferred tax liabilities	$	10,662	$	10,664
Current deferred tax assets – net	$	3,665	$	3,550
Noncurrent deferred tax liabilities – net	$	14,327	$	14,214

The reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:

	Fiscal 2013			Fiscal 2012			Fiscal 2011
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		1.6			2.7			2.4
Manufacturing deduction benefit		(3.1	)		(3.1	)		(3.0	)
Other differences		(.1	)		(.4	)		.5
Effective income tax rate		33.4	%		34.2	%		34.9	%

As of April 27, 2013, the gross amount of unrecognized tax benefits was $4.3 million, of which $126,000 was recognized as tax benefit in Fiscal 2013. If we were to prevail on all uncertain tax positions, the net effect would be to reduce our tax expense by approximately $3.5 million. A reconciliation of the changes in the gross amount of unrecognized tax benefits, which amounts are included in other liabilities in the accompanying consolidated balance sheets, is as follows:

	(In thousands)
	Fiscal 2013			Fiscal 2012			Fiscal 2011
Beginning balance	$	4,548		$	4,687		$	3,997
Increases due to current period tax positions		415			408			857
Decreases due to lapse of statute of limitations		(614	)		(547	)		(167	)
Ending balance	$	4,349		$	4,548		$	4,687

We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of April 27, 2013, unrecognized tax benefits included accrued interest of $514,000, of which approximately $26,000 was recognized as a tax benefit in Fiscal 2013.

We file annual income tax returns in the United States and in various state and local jurisdictions. A number of years may elapse before an uncertain tax position, for which we have unrecognized tax benefits, is resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our unrecognized tax benefits reflect the most probable outcome. We adjust these unrecognized tax benefits, as well as the related interest, in light of changing facts and circumstances. The resolution of any particular uncertain tax position could require the use of cash and an adjustment to our provision for income taxes in the period of resolution. Federal income tax returns for fiscal years subsequent to 2009 are subject to examination. Generally, the income tax returns for the various state jurisdictions are subject to examination for fiscal years ending after fiscal 2009.