Note 9. Income Taxes

9 Months Ended

May 25, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

9. Income Taxes

The Company’s effective income tax rate was 37.3% and 38.3% for the thirteen and thirty-nine weeks ended May 25, 2013, respectively, as compared to 35.2% and 37.1% for the thirteen and thirty-nine weeks ended May 26, 2012. The increase in the effective income tax rate for the thirteen and thirty-nine weeks ended May 25, 2013 was primarily due to the fact that the Company’s 2012 rate benefited from the reversal of tax contingency reserves related to the resolution of certain state tax audits. In addition, the Company recognized $0.4 million of tax expense in the thirty-nine weeks ended May 25, 2013 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 thirty-nine weeks ended May 25, 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 2009 and 2005, respectively, and the Company recently concluded an audit of 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 2008. 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.