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Note 10 - Income Taxes
 9 Months Ended
Nov. 28, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

10. INCOME TAXES

 

For the 13 weeks and 39 weeks ended November 28, 2021, the Company recorded income tax provisions from continuing operations of $569 and $2,571, respectively, which included discrete income tax provisions of $27 and $175, respectively. For the 13 weeks and 39 weeks ended November 29, 2020, the Company recorded income tax provisions from continuing operations of $369 and $1,557, respectively, which included discrete income tax provisions of $44 and $126, respectively.

 

The Company’s effective tax rates for the 13 weeks and 39 weeks ended November 28, 2021 were 24.6% and 28.3%, respectively, compared to 26.3% and 27.2%, respectively, in the comparable prior year periods. The effective tax rates for the 13 weeks and 39 weeks ended November 28, 2021 were higher than the U.S. statutory rate of 21% primarily due to state and local taxes and discrete income tax provisions for the write-off of deferred tax assets and liabilities related to its closed Singapore facility and the accrual of interest related to unrecognized tax benefits. The effective rates for the 13 weeks and 39 weeks ended November 29, 2020 were higher than the U.S. statutory rate of 21% primarily due to state and local taxes and a discrete income tax provision for the accrual of interest related to unrecognized tax benefits.

 

Notwithstanding the U.S. taxation of the deemed repatriated earnings as a result of the mandatory one-time transition tax on the accumulated untaxed earnings of foreign subsidiaries of U.S. shareholders included in the 2017 Tax Cuts and Jobs Act, the Company intends to indefinitely invest approximately $25 million of undistributed earnings outside of the U.S. If these future earnings are repatriated to the U.S., or if the Company determines such earnings will be remitted in the foreseeable future, the Company may be required to accrue U.S. deferred taxes on such earnings.