Income Taxes

Income tax expense for the third quarter and nine-month period of fiscal 2014 and for the third quarter and nine-month period of fiscal 2013 differed from the amounts computed by applying the U.S. Federal income tax rate of 35% in both fiscal 2014 and fiscal 2013, to earnings before income taxes as a result of the following:



	Third Quarter						Nine-month period
	Fiscal 2014			Fiscal 2013			Fiscal 2014			Fiscal 2013
Computed “expected” tax expense	$	972		$	877		$	7,176		$	7,409
Non-taxable gain on life insurance policies	(825		)	—			(825		)	—
State income tax expense, net of federal income tax benefit	23			95			755			839
Other, net	46			(8		)	(42		)	(55		)
Total expense	$	216		$	964		$	7,064		$	8,193

Management is required to estimate the annual effective tax rate based upon its forecast of annual pre-tax earnings. To the extent the actual pre-tax results or anticipated permanent tax differences for the year differ from forecasted estimates applied at the end of the most recent interim period, the actual tax rate recognized in fiscal 2014 could be materially different from the forecasted rate as of the end of the nine-month period of fiscal 2014.

Income tax expense for the third quarter and the nine-month period of fiscal 2014 and the third quarter and the nine-month period of fiscal 2013 was estimated based on projected annual pre-tax income, discrete tax adjustments and annual tax rates for the respective tax jurisdictions applicable to the Company. Income tax expense as reported was computed using an income tax rate of 34.5% for fiscal 2014 and of 38.7% for fiscal 2013.

FASB ASC 740-10 (the overall Subtopic of topic 740 on income taxes) prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. During the nine-month period of fiscal 2014, there were no changes in evaluations made under FASB ASC 740-10. There were no reserves for uncertain tax positions existing at March 29, 2014 or at June 29, 2013.