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Income Taxes
 12 Months Ended
Mar. 31, 2012
Income Tax [Abstract]  
Income Taxes

NOTE 8 — INCOME TAXES

The components of the provision for income taxes are as follows:

 

 

                         
    Year Ended Fiscal March  
    2012     2011     2010  
    (Dollars in thousands)  

Current –

                        

Federal

   $ 26,002     $ 22,094     $ 17,202  

State

     2,910       3,451       2,028  
   

 

 

    

 

 

    

 

 

  
      28,912       25,545       19,230  
   

 

 

    

 

 

    

 

 

  

Deferred –

                        

Federal

     3,273       3,121       1,206  

State

     (111 )      (570 )      (202 ) 
   

 

 

    

 

 

    

 

 

  
      3,162       2,551       1,004  
   

 

 

    

 

 

    

 

 

  

Total

   $ 32,074     $ 28,096     $ 20,234  
   

 

 

    

 

 

    

 

 

  

 

Deferred tax (liabilities) assets consist of the following:

 

 

                 
    March 31,
2012		     March 26,
2011		  
    (Dollars in thousands)  

Goodwill

   $ (9,525 )    $ (7,211 ) 

Property and equipment

     (5,367 )      (4,602 ) 

Prepaid expenses

     (569 )      (544 ) 

Pension

             (995 ) 

Other

     (343 )      (341 ) 
   

 

 

    

 

 

  

Total deferred tax liabilities

     (15,804 )      (13,693 ) 
   

 

 

    

 

 

  

Insurance reserves

     7,561       6,016  

Stock options

     2,429       2,671  

Warranty and other reserves

     2,389       2,106  

Deferred rent

     2,064       2,244  

Accrued compensation

     1,373       1,301  

Indirect effect of unrecognized tax benefits in other jurisdictions

     1,163       1,180  

Pension

     99          

Other

     2,989       2,489  
   

 

 

    

 

 

  

Total deferred tax assets

     20,067       18,007  
   

 

 

    

 

 

  

Net deferred tax assets

   $ 4,263     $ 4,314  
   

 

 

    

 

 

  

The Company has $2.3 million of state net operating loss carryforwards available as of March 31, 2012. The carryforwards expire in varying amounts through 2032. Based on all available evidence, the Company has determined that it is more likely than not that sufficient taxable income of the appropriate character within the carryforward period will exist for the realization of the tax benefits on existing state net operating loss carryforwards.

The Company believes it is more likely than not that all other future tax benefits will be realized as a result of current and future income.

A reconciliation between the U.S. federal statutory tax rate and the effective tax rate reflected in the accompanying financial statements is as follows:

 

 

                                                 
    Year Ended Fiscal March  
    2012     2011     2010  
    Amount     Percent     Amount     Percent     Amount     Percent  
    (Dollars in thousands)  

Federal income tax based on statutory tax rate applied to income before taxes

   $ 30,340       35.0     $ 25,878       35.0     $ 18,699       35.0  

State income tax, net of federal income tax benefit

     2,231       2.6       2,291       3.1       1,155       2.2  

Other

     (497 )      (0.6 )      (73 )      (0.1 )      380       0.7  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 32,074       37.0     $ 28,096       38.0     $ 20,234       37.9  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

The following is a rollforward of the Company’s liability for income taxes associated with unrecognized tax benefits:

 

 

         
    (Dollars in thousands)  

Balance at March 28, 2009

   $ 4,493  

Tax positions related to current year:

        

Additions

     1,415  

Reductions

        

Tax positions related to prior years:

        

Additions

        

Reductions

     (16 ) 

Settlements

        

Lapses in statutes of limitations

     (306 ) 
   

 

 

  

Balance at March 27, 2010

     5,586  

Tax positions related to current year:

        

Additions

     799  

Reductions

        

Tax positions related to prior years:

        

Additions

     335  

Reductions

     (612 ) 

Settlements

        

Lapses in statutes of limitations

     (144 ) 
   

 

 

  

Balance at March 26, 2011

     5,964  

Tax positions related to current year:

        

Additions

     1,000  

Reductions

        

Tax positions related to prior years:

        

Additions

     230  

Reductions

     (904 ) 

Settlements

     (166 ) 

Lapses in statutes of limitations

     (640 ) 
   

 

 

  

Balance at March 31, 2012

   $ 5,484  
   

 

 

  

The total amount of unrecognized tax benefits was $5.5 million at March 31, 2012, the majority of which, if recognized, would affect the effective tax rate.

In the normal course of business, the Company provides for uncertain tax positions and the related interest and penalties, and adjusts its unrecognized tax benefits and accrued interest and penalties accordingly. During the year ended March 31, 2012, the Company recorded a benefit from the reversal of accrued interest and penalties of approximately $.3 million, in income tax expense; and during the years ended March 26, 2011 and March 27, 2010, the Company recognized interest and penalties of approximately $.3 million and $.1 million, respectively, in income tax expense. Additionally, the Company had approximately $.7 million and $.9 million of interest and penalties associated with uncertain tax benefits accrued as of March 31, 2012 and March 26, 2011, respectively.

The Company is currently under state audit for, with few exceptions, fiscal 2001 to 2010 tax years. It is reasonably possible that the examination phase of the audits for these years may conclude in the next 12 months, and that the related unrecognized tax benefits for tax positions taken regarding previously filed tax returns may change from those recorded as liabilities for uncertain tax positions in the Company’s financial statements as of March 31, 2012. However, based on the status of the examinations, it is not possible to estimate the effect of any amount of such change to previously recorded uncertain tax positions.

The Company files U.S. federal income tax returns and income tax returns in various state jurisdictions. The Company’s fiscal 2009 and fiscal 2011 U.S. federal tax years and various state tax years remain subject to income tax examinations by tax authorities.