B. RESTATEMENT OF PRIOR FINANCIAL STATEMENTS

While researching alternative methods to calculate retained claim liability for our self-insured workers compensation insurance program, we discovered errors in the application of actuarial methods used to estimate the obligation for future payments resulting from claims due to past events. These errors primarily related to the Company's selection of loss development factors and the application of such factors to the population of claims. The impact of these prior period misstatements to our consolidated financial statements resulted in the understatement of workers compensation expense with a corresponding understatement of workers compensation self insurance liabilities over multiple fiscal years through September 25, 2010.

In accordance with applicable accounting guidance, an adjustment to the financial statements for each individual prior period presented is required to reflect the correction of the period-specific effects of the change, if material. Based on our evaluation of relevant quantitative and qualitative factors, we determined the identified corrections are immaterial to the Company's individual prior period consolidated financial statements, however, the cumulative correction of the prior period errors would be material to our current year Condensed Consolidated Statements of Income. Consequently, we have restated the accompanying Condensed Consolidated Balance Sheet as of September 25, 2010 and the opening September 25, 2010 and September 26, 2009 balances presented in our Condensed Consolidated Statement of Changes in Stockholders Equity as of June 25, 2011, appearing herein, from amounts previously reported to correct the prior period adjustments by the understatement of workers compensation self insurance liabilities with a corresponding reduction to retained earnings.

The impact of these adjustments is not material to our 2010 and 2009 statement of cash flows as the impact to individual line items within operating activities is not material and there was no net impact to cash provided by operating activities, cash used in investing activities and cash used in financing activities. However, we will restate the 2010 and 2009 statement of cash flows as it appears in our 2011 Annual Report on Form 10-K to reflect changes to individual line items within operating activities.

We have also adjusted the Condensed Consolidated Statements of Income for the three and nine months ended June 26, 2010 by approximately $380,000 ($224,000 net of tax) and approximately $1.1 million ($672,000 net of tax), respectively, to reflect the additional workers compensation expense. We have also adjusted the Condensed Consolidated Statement of Cash Flows for the nine months ended June 26, 2010 to reflect changes to the individual line items within operating activities. The current year effect of the adjustment is not material to the condensed consolidated financial statements.

The tables below summarize the effect of the restatement of previously reported consolidated financial statements for the periods that will be presented in our 2011 Annual report on Form 10-K (in thousands, except per share data):


	As of September 25, 2010
	As Previously Reported		Adjustment			As Restated
Consolidated Balance Sheet
Deferred income taxes (current)	$	6,070	$	3,058		$	9,128
Other current assets		16,545		3,058			19,603
Total assets		1,529,300		3,058			1,532,358
Self-insurance liabilities		14,523		7,817			22,340

Accrued expenses and current portion of other long-term liabilities		77,282		7,817			85,099
Retained earnings		295,023		(4,759	)		290,264
Total stockholders' equity		413,840		(4,759	)		409,081
Total liabilities and stockholders' equity		1,529,300		3,058			1,532,358


	Year Ended September 25, 2010							Year Ended September 26, 2009
	As Previously Reported		Adjustment			As Restated		As Previously Reported		Adjustment			As Restated
Consolidated Statement of Income
Operating and administrative expenses	$	653,674	$	1,518		$	655,192	$	632,410	$	1,521		$	633,931
Income from operations		110,965		(1,518	)		109,447		113,223		(1,521	)		111,702
Income before income taxes		50,335		(1,518	)		48,817		46,234		(1,521	)		44,713
Income tax expense (benefit):
Deferred		5,745		(621	)		5,124		16,803		(626	)		16,177
Net income		31,739		(897	)		30,842		28,828		(895	)		27,933
Earnings per share:
Class A Common Stock
Basic		1.35		(0.03	)		1.32		1.23		(0.04	)		1.19
Diluted		1.30		(0.04	)		1.26		1.18		(0.04	)		1.14
Class B Common Stock
Class A		1.23		(0.03	)		1.20		1.12		(0.04	)		1.08
Class B		1.23		(0.03	)		1.20		1.12		(0.04	)		1.08