XML 57 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8 - Income Taxes
 6 Months Ended
Nov. 25, 2012
Income Tax Disclosure [Text Block]
8.            Income Taxes

The provision for income taxes for the three and six months ended November 25, 2012 was $2.9 million and $5.5 million, respectively.  The effective tax rate for the six months ended November 25, 2012 was 29% compared to 38% for the same periods in fiscal year 2012. The effective tax rate for the six months ended November 25, 2012 differs from the statutory federal income tax rate of 35% as a result of several factors, including state taxes, domestic manufacturing deduction, non-deductible stock-based compensation expense, the benefit of state research and development credits and post acquisition adjustments related to the GreenLine acquisition.  

As of May 27, 2012, the Company had unrecognized tax benefits of approximately $766,000.  Included in the balance of unrecognized tax benefits as of May 27, 2012 is approximately $593,000 of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company expects its unrecognized tax benefits to change by $8,000 within the next twelve months related to the expiration of tax attributes.

In accordance with accounting guidance, the Company has decided to classify interest and penalties related to uncertain tax positions as a component of its provision for income taxes.  The Company has accrued an insignificant amount of interest and penalties relating to the income tax on the unrecognized tax benefits as of November 25, 2012 and May 27, 2012.

Due to tax attribute carry forwards, the Company is subject to examination for tax years 1996 and later for U.S. tax purposes.  The Company was also subject to examination in various state jurisdictions for tax years 1998 and later, none of which were individually significant.