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Income Taxes
9 Months Ended
Mar. 28, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

Note 5 — Income Taxes

We recorded approximately $776 of discrete income tax items during the third quarter of fiscal 2013. Consequently, we recognized income tax expense of $1,447 for the third quarter of fiscal 2013 which resulted in an effective tax rate of 80.9%. The effective tax rate for the thirty-nine weeks ended March 28, 2013 was 39.9%. The discrete tax items recorded in the third quarter of fiscal 2013 primarily relate to the impact of a full valuation allowance recorded against deferred tax assets that were created as a result of our equity investment in, and sale of intellectual property rights to an unconsolidated variable interest entity. See Note 12.

 

At the beginning of fiscal year 2013, we had gross state tax net operating losses of approximately $11,600 that will expire between 2017 and 2030 if not utilized.

As of March 28, 2013, unrecognized tax benefits and accrued interest and penalties were not material. There were no material changes to the amount of unrecognized tax benefits during the first thirty-nine weeks of fiscal 2013. We do not anticipate that total unrecognized tax benefits will significantly change in the next twelve months.

We file income tax returns with federal and state tax authorities within the United States of America. Our federal return for fiscal 2010 is currently under audit. Our federal and Illinois returns are open for audit for fiscal 2008 and later. Our California tax returns are open for audit for fiscal 2007 and later. No other tax jurisdictions are material to us.