Note 9. Income Taxes

6 Months Ended

Feb. 23, 2013

Income Tax Disclosure [Text Block]

9. Income Taxes

The Company’s effective income tax rate was 38.4% and 38.7% for the thirteen and twenty-six weeks ended February 23, 2013, respectively, as compared to 38.3% for both the thirteen and twenty-six weeks ended February 25, 2012.  The increase in the effective income tax rate for the twenty-six weeks ended February 23, 2013 was primarily due to $0.4 million of tax expense that the Company recognized related to non-deductible compensation that was recorded in the first quarter of fiscal 2013.  The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense which is consistent with the recognition of these items in prior reporting periods.  During the twenty-six weeks ended February 23, 2013, there were no material changes in the amount of unrecognized tax benefits or the amount accrued for interest and penalties.

U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2008 and 2005, respectively, and the Company is currently under audit for U.S. federal income taxes for 2010 and 2011. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2007.  The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months.