Note 8 - Income Taxes

9 Months Ended

Dec. 27, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. Income Taxes

The Company’s effective tax rate was 23.6% and 23.2% for the nine months ended December 27, 2025 and December 28, 2024, respectively. The increase in the current nine-month period is primarily driven by the impact of lower federal credits and higher earnings before income taxes as compared to the prior year nine-month period, resulting in an increase of 0.7% to the effective tax rate. Additionally, the prior year nine-month period benefited from interest received on a federal income tax refund, which resulted in a 0.2% increase in the current nine-month period effective tax rate on a comparative basis. These increases were partially offset by the impact of statute expirations for a portion of uncertain tax benefits during the current nine-month period which decreased the effective tax rate by 0.4%.

On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The corporate tax changes included in the OBBBA did not have a material impact on the Company’s effective income tax rate during the nine months ended December 27, 2025, and it is not anticipated to have a material impact on the Company’s effective income tax rate in future periods. The OBBBA’s provisions for accelerated tax deductions will reduce the Company’s cash income tax requirements for the current fiscal year.

The Company's federal income tax returns for fiscal years after 2022 are subject to examination. The Company is currently involved in two state income tax audits covering fiscal year 2016 through fiscal year 2023. The Company is current on its federal and state tax returns.