Note L - Income Taxes |
9 Months Ended |
|---|---|
Dec. 25, 2022 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
NOTE L – INCOME TAXES
The effective income tax rates for the thirteen weeks ended December 25, 2022 and December 26, 2021 were 27.3% and 28.8%, respectively. The effective income tax rate for the thirteen weeks ended December 25, 2022 reflected $1,223 of income tax expense recorded on $4,486 of pre-tax income. The effective income tax rate for the thirteen weeks ended December 26, 2021 reflected $860 of income tax expense recorded on $2,990 of pre-tax income.
The effective income tax rates for the thirty-nine weeks ended December 25, 2022 and December 26, 2021 were 27.1% and 28.1%, respectively. The effective income tax rate for the thirty-nine weeks ended December 25, 2022 reflected $6,093 of income tax expense recorded on $22,451 of pre-tax income. The effective income tax rate for the thirty-nine weeks ended December 26, 2021 reflected $4,477 of income tax expense recorded on $15,915 of pre-tax income.
The effective income tax rates for the thirteen and thirty-nine weeks ended December 25, 2022 and December 26, 2021 were higher than the United States statutory income tax rate primarily due to state and local taxes.
The amount of unrecognized tax benefits included in Other Liabilities at December 25, 2022 and March 27, 2022 was $437 and $403, respectively, all of which would impact the Company’s effective tax rate, if recognized. As of December 25, 2022 and March 27, 2022, the Company had approximately $315 and $271, respectively, accrued for the payment of interest and penalties in connection with unrecognized tax benefits.
On August 16, 2022, the United States enacted the Inflation Reduction Act. Among other provisions, this new law imposes a 1% excise tax on stock buybacks made after December 31, 2022, with certain exceptions including stock repurchases of less than $1,000 within a tax year. We are not expecting this new law to have a material effect on our consolidated financial statements. |