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Income Taxes
9 Months Ended
Jun. 01, 2013
Income Taxes [Abstract]  
Income Taxes

NOTE 8 – INCOME TAXES

 

In order to determine our quarterly provision for income taxes, we use an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which we operate.  Certain discrete items are separately recognized in the quarter during which they occur and can be a source of variability in the effective tax rates from quarter to quarter.

 

Our effective tax rate for the quarter ended June 1, 2013 of approximately 40 percent resulted from income being taxed at statutory combined rates, increased by taxable interest on management common stock loans, nondeductible share-based compensation relating to management common stock loans, nondeductible executive compensation, and certain permanent items.

 

However, due to the utilization of foreign tax credit carryforwards and other deferred income tax assets, we expect our cash paid for income taxes will remain significantly less than our income tax provision through fiscal 2015.  During the three quarters ended June 1, 2013, we paid $2.7 million of cash for income taxes compared with an income tax provision of $4.3 million during the same period.