XML 66 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Note 10 - Income Taxes | 12 Months Ended
--- | ---
Mar. 30, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | NOTE J - INCOME TAXES The income tax provision consists of the following for the fiscal years ended March 30, 2014, March 31, 2013 and March 25, 2012:
|  | March 30, 2014 |  |  | March 31, 2013 |  |  | March 25, 2012 |
Federal |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 2,664 |  |  | $ | 3,237 |  |  | $ | 1,274 |
Deferred |  |  | 1,421 |  |  |  | 377 |  |  |  | 1,566 |
|  |  | 4,085 |  |  |  | 3,614 |  |  |  | 2,840 |
State and local |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 918 |  |  |  | 937 |  |  |  | 534 |
Deferred |  |  | 231 |  |  |  | 120 |  |  |  | 475 |
|  |  | 1,149 |  |  |  | 1,057 |  |  |  | 1,009 |
|  | $ | 5,234 |  |  | $ | 4,671 |  |  | $ | 3,849 |
The total income tax provision for the fiscal years ended March 30, 2014, March 31, 2013 and March 25, 2012 differs from the amounts computed by applying the United States Federal income tax rate of 34% to income before income taxes as a result of the following:
|  | March 30, 2014 |  |  | March 31, 2013 |  |  | March 25, 2012 |
Computed “expected” tax expense |  | $ | 4,611 |  |  | $ | 4,127 |  |  | $ | 3,412 |
State and local income taxes, net of Federal income tax benefit |  |  | 773 |  |  |  | 633 |  |  |  | 682 |
Tax-exempt investment earnings |  |  | (110 | ) |  |  | (133 | ) |  |  | (178 | )
Change in uncertain tax positions, net |  |  | (22 | ) |  |  | 22 |  |  |  | (24 | )
Nondeductible meals and entertainment and other |  |  | (18 | ) |  |  | 22 |  |  |  | (43 | )
|  | $ | 5,234 |  |  | $ | 4,671 |  |  | $ | 3,849 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
|  | March 30, 2014 |  |  | March 31, 2013 |
Deferred tax assets |  |  |  |  |  |  |  |
Accrued expenses |  | $ | 162 |  |  | $ | 166 |
Allowance for doubtful accounts |  |  | 49 |  |  |  | 49 |
Deferred revenue |  |  | 569 |  |  |  | 510 |
Deferred stock compensation |  |  | 594 |  |  |  | 646 |
Excess of straight line over actual rent |  |  | 289 |  |  |  | 316 |
Investment |  |  | 157 |  |  |  | - |
Other |  |  | 129 |  |  |  | 127 |
Total gross deferred tax assets |  | $ | 1,949 |  |  | $ | 1,814 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Deductible prepaid expense |  |  | 302 |  |  |  | 223 |
Unrealized gain on marketable securities |  |  | 83 |  |  |  | 202 |
Depreciation expense |  |  | 1,692 |  |  |  | 321 |
Deductible business interruption expenses |  |  | 293 |  |  |  | - |
Amortization |  |  | 287 |  |  |  | 243 |
Total gross deferred tax liabilities |  |  | 2,657 |  |  |  | 989 |
Net deferred tax (liability) asset |  |  | (708 | ) |  |  | 825 |
Less current portion |  |  | (26 | ) |  |  | (345 | )
Long-term portion |  | $ | (734 | ) |  | $ | 480 |
A valuation allowance is provided when it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. We consider the level of historical taxable income, scheduled reversal of temporary differences, tax planning strategies and projected future taxable income in determining whether a valuation allowance is warranted. Based upon these considerations, management believes that it is more likely than not that the Company will realize the benefit of its gross deferred tax asset. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 30, 2014, March 31, 2013 and March 25, 2012.
|  | March 30, 2014 |  |  | March 31, 2013 |  |  | March 25, 2012 |
Unrecognized tax benefits, beginning of year |  | $ | 296 |  |  | $ | 422 |  |  | $ | 318 |
Decreases of tax positions taken in prior years |  |  | (34 | ) |  |  | (50 | ) |  |  | (41 | )
Increase based on tax positions taken in current year |  |  | 21 |  |  |  | 34 |  |  |  | 26 |
Settlements of tax positions taken in prior years |  |  | - |  |  |  | (110 | ) |  |  | - |
Increase based on tax positions taken in prior years |  |  | - |  |  |  | - |  |  |  | 119 |
Unrecognized tax benefits, end of year |  | $ | 283 |  |  | $ | 296 |  |  | $ | 422 |
The amount of unrecognized tax benefits at March 30, 2014, March 31, 2013 and March 25, 2012 were $283, $296 and $422, respectively, all of which would impact Nathan’s effective tax rate, if recognized. As of March 30, 2014 and March 31, 2013, the Company had $329 and $337, respectively, accrued for the payment of interest and penalties. For the fiscal years ended March 30, 2014, March 31, 2013 and March 25, 2012 Nathan’s recognized interest and penalties in the amounts of $43, $46, and $47, respectively. The Company believes that it is reasonably possible that decreases in unrecognized tax benefits of up to $64 may be recorded within the next year. In May 2014, Nathan’s received notification from the Internal Revenue Service that it is seeking to review its tax return for the year ended March 31, 2013. The earliest tax years’ that are subject to examination by taxing authorities by major jurisdictions are as follows:
Jurisdiction |  | Fiscal Year
Federal |  | 2011
New York State |  | 2011
New York City |  | 2011

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration