Note 15 - Quarterly Results (unaudited)

During the fourth quarter of fiscal 2011, it was determined that accrued vacation was overstated by $5.3 million as of June 26, 2011. The error resulted in an overstatement of vacation expense and the related accrual by $3.1 million, $1.1 million, and $1.1 million in the first, second and third quarters of fiscal 2011, respectively.

The Company has analyzed the impact of correcting the overstatement in the fourth quarter of fiscal 2011 and concluded that while the correction of the error was significant to the three month period ended September 25, 2011, the error was not material to the first, second or third quarters of fiscal 2011, taking into account the requirements of the SEC Staff Accounting Bulletin No. 108 Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements ("SAB 108"). Management evaluated the materiality of the error from a qualitative and quantitative perspective. Based on such evaluation, Management of the Company concluded that correcting the error entirely in the fourth quarter of fiscal 2011 would be significant to the statement of income for the three months ended September 25, 2011. As a result, Management of the Company decreased accrued vacation and the related expense by $3.1 million, $1.1 million, and $1.1 million in the first, second and third quarters of fiscal 2011, respectively, to correct the cumulative $5.3 million overstatement. The changes in vacation accrual is partially offset by changes in accrued deferred benefits. As provided by SAB 108, the error corrections will not require the previously filed quarterly reports on Form 10-Q to be amended, but does require that the Company correct and recast the affected financial statement amounts.

The following is a summary of the effect of the adjustments to the Company's consolidated balance sheet, statement of income, and cash flows and the corrected financial statement amounts for each of the quarters during fiscal 2011:


	As Previously Reported			Adjustments			Restated
	(In thousands, except per share amounts)
As of Dec. 26, 2010
Balance Sheet
Accrued payroll and related expenses	$	86,200		$	(3,088	)	$	83,112
Accrued income taxes	$	(190	)	$	1,085		$	895
Deferred benefits	$	74,091		$	426		$	74,517
Retained earnings	$	79,537		$	1,577		$	81,114

For the thirteen weeks ended Dec. 26, 2010
Statement of Income
Selling, general and administrative expenses	$	203,518		$	(2,662	)	$	200,856
Operating profit	$	22,811		$	2,662		$	25,473
Income before income taxes	$	2,005		$	2,662		$	4,667
Income taxes	$	741		$	1,085		$	1,826
Net Income	$	1,264		$	1,577		$	2,841
Earnings per share	$	36.58		$	45.64		$	82.22

For the thirteen weeks ended Dec. 26, 2010
Statement of Cash Flows
Operating Activities
Net income	$	1,264		$	1,577		$	2,841
Change in other accrued liabilities	$	(21,081	)	$	(3,088	)	$	(24,169	)
Change in accrued income taxes	$	(717	)	$	1,085		$	368
Change in long-term reserves	$	3,466		$	426		$	3,892


	As Previously Reported			Adjustments			Restated
	(In thousands, except for per share amounts)
As of Mar. 27, 2011
Balance Sheet
Accrued payroll and related expenses	$	88,902		$	(4,212	)	$	84,690
Accrued income taxes	$	(2,399	)	$	1,480		$	(919	)
Deferred Benefits	$	76,461		$	581		$	77,042
Retained earnings	$	78,952		$	2,151		$	81,103

For the thirteen weeks ended Mar. 27, 2011
Statement of Income
Selling, general and administrative expenses	$	205,959		$	(969	)	$	204,990
Operating profit	$	27,107		$	969		$	28,076
Income before income taxes	$	14,688		$	969		$	15,657
Income taxes	$	5,914		$	395		$	6,309
Net Income	$	8,774		$	574		$	9,348
Earnings per share	$	256.50		$	16.79		$	273.29

For the twenty-six weeks ended Mar. 27, 2011
Statement of Cash Flows
Operating Activities
Net income	$	10,038		$	2,151		$	12,189
Change in other accrued liabilities	$	(7,846	)	$	(4,212	)	$	(12,058	)
Change in accrued income taxes	$	(2,926	)	$	1,480		$	(1,446	)
Change in long-term reserves	$	6,834		$	581		$	7,415


	As Previously Reported			Adjustments			Restated
	(In thousands, except per share amounts)
As of June 26, 2011
Balance Sheet
Accrued payroll and related expenses	$	99,252		$	(5,342	)	$	93,910
Accrued income taxes	$	(1,412	)	$	1,877		$	465
Deferred Benefits	$	75,999		$	737		$	76,736
Retained earnings	$	86,010		$	2,728		$	88,738

For the thirteen weeks ended June 26, 2011
Statement of Income
Selling, general and administrative expenses	$	216,040		$	(974	)	$	215,066
Operating profit	$	23,445		$	974		$	24,419
Income before income taxes	$	12,014		$	974		$	12,988
Income taxes	$	4,956		$	397		$	5,353
Net Income	$	7,058		$	577		$	7,635
Earnings per share	$	208.59		$	17.05		$	225.64

For the thirty-nine weeks ended June 26, 2011
Statement of Cash Flows
Operating Activities
Net income	$	17,096		$	2,728		$	19,824
Change in other accrued liabilities	$	(16,573	)	$	(5,342	)	$	(21,915	)
Change in accrued income taxes	$	(1,939	)	$	1,877		$	(62	)
Change in long-term reserves	$	8,183		$	737		$	8,920

Quarterly results for fiscal 2009, 2010 and 2011, after restatement of the 2011 quarters as discussed above, are as follows (in thousands except share and per share amounts):


	Sales		Gross Profit		Operating Profit		Net Income		Average Shares Outstanding		Earnings Per Share
Fiscal 2009 Quarters
13 weeks ended 12/28/08	$	959,253	$	246,862	$	22,498	$	3,541		35,152	$	100.73
13 weeks ended 03/29/09		930,996		255,826		35,962		11,121		35,152		316.37
13 weeks ended 06/28/09		928,641		254,216		37,793		15,142		35,152		430.76
13 weeks ended 09/27/09		947,150		245,132		25,055		4,965		35,152		141.24


	$	3,766,040	$	1,002,036	$	121,308	$	34,769		35,152	$	989.10


Fiscal 2010 Quarters
13 weeks ended 12/27/09	$	923,864	$	238,150	$	28,146	$	6,711		35,152	$	190.91
13 weeks ended 03/28/10		885,537		236,445		27,085		5,967		34,572		172.60
13 weeks ended 06/27/10		900,044		245,657		27,474		5,982		34,552		173.13
13 weeks ended 09/26/10		897,394		249,696		26,119		5,924		34,552		171.45


	$	3,606,839	$	969,948	$	108,824	$	24,584		34,707	$	708.33


Fiscal 2011 Quarters
13 weeks ended 12/26/10 ⁽¹⁾	$	899,037	$	238,773	$	25,473	$	2,841		34,552	$	82.22
13 weeks ended 03/27/11 ⁽¹⁾		913,397		245,137		28,076		9,348		34,206		273.29
13 weeks ended 06/26/11 ⁽¹⁾		939,026		251,316		24,419		7,635		33,837		225.64
13 weeks ended 09/25/11		941,846		255,666		22,984		6,466		33,837		191.09


	$	3,693,306	$	990,892	$	100,952	$	26,290		34,108	$	770.79

⁽¹⁾	As restated.