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Income taxes | 12 Months Ended
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Mar. 29, 2014
Income Tax Disclosure [Abstract] |
Income taxes |
9. | Income taxes:
(a) | The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of March 29, 2014, the Company had no accrued interest related to uncertain tax positions due to available tax loss carry forwards. The tax years 2009 through 2014 remain open to examination by the major taxing jurisdictions to which the Company is subject.
The Company evaluates its deferred tax assets to determine if any adjustments to its valuation allowances are required. As part of this analysis, the Company could not reach the required conclusion that it would be able to more likely than not realize the value of both its U.S. and Canadian net deferred tax assets in the future. As a result, the Company has a non-cash valuation allowance of $56.8 million against the full value of the Company’s net deferred tax assets. The significant items comprising the Company’s net deferred tax assets at March 29, 2014 and March 30, 2013 are as follows:
|  | Fiscal Year Ended |
|  | March 29, 2014 |  |  | March 30, 2013 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Loss and tax credit carry forwards |  | $ | 41,889 |  |  | $ | 41,776 |
Difference between book and tax basis of property and equipment |  |  | 2,344 |  |  |  | 2,746 |
Interest expense limitations carry forward |  |  | 7,525 |  |  |  | 6,292 |
Inventory allowances |  |  | 608 |  |  |  | 759 |
Other reserves not currently deductible |  |  | 724 |  |  |  | 874 |
Capital lease obligation |  |  | 3,204 |  |  |  | 3,617 |
Expenses not currently deductible |  |  | 419 |  |  |  | 439 |
Other |  |  | 96 |  |  |  | 104 |
Net deferred tax asset before valuation allowance |  |  | 56,809 |  |  |  | 56,607 |
Valuation allowance |  |  | (56,809 | ) |  |  | (56,607 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
The following table reconciles the unrecognized tax benefits at March 29, 2014 and March 30, 2013:
|  | Fiscal Year Ended |
|  | March 29, 2014 |  |  | March 30, 2013 |
|  | (In thousands) |
Unrecognized tax benefits at the beginning of the year |  | $ | — |  |  | $ | — |
Gross increase – tax position in current period |  |  | 183 |  |  |  | 299 |
Applied against certain element of deferred tax assets |  |  | (183 | ) |  |  | (299 | )
Unrecognized tax benefits at the end of the year |  | $ | — |  |  | $ | — |
All unrecognized tax benefits would affect the effective tax rate if recognized. The Company’s income tax expense (benefit) consists of the following components:
|  | Fiscal Year Ended |
|  | March 29, 2014 |  |  | March 30, 2013 |  |  | March 31, 2012 |
|  | (In thousands) |
Income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 183 |  |  | $ | 299 |  |  | $ | 332 |
Deferred |  |  | (1,525 | ) |  |  | 393 |  |  |  | (820 | )
Valuation allowance |  |  | 1,360 |  |  |  | (672 | ) |  |  | 511 |
Income tax expense |  | $ | 18 |  |  | $ | 20 |  |  | $ | 23 |
The Company’s current federal tax payable at March 29, 2014 was $18,000 and $5,800 for March 30, 2013, and March 31, 2012. The Company’s provision for income taxes varies from the amount computed by applying the statutory income tax rates for the reasons summarized below:
|  | Fiscal Year Ended |
|  | March 29, 2014 |  |  | March 30, 2013 |  |  | March 31, 2012 |
Canadian statutory rate |  |  | 26.4 | % |  |  | 26.2 | % |  |  | 27.5 | %
Rate differential for U.S. operations |  |  | 2.0 | % |  |  | (7.3 | )% |  |  | (139.1 | )%
Adjustment to valuation allowance |  |  | (26.8 | )% |  |  | 21.0 | % |  |  | 493.9 | %
Utilization of unrecognized losses and other tax attributes |  |  | 0.0 | % |  |  | (45.3 | )% |  |  | (395.5 | )%
Permanent differences and other |  |  | (2.1 | )% |  |  | 6.7 | % |  |  | 22.7 | %
Total |  |  | (0.5 | )% |  |  | 1.3 | % |  |  | 9.5 | %
(b) | At March 29, 2014, the Company had federal non-capital losses of Cdn$23.5 million ($21.2 million in U.S. dollars) available to reduce future Canadian federal taxable income and investment tax credits (“ITC’s”) in Canada of Cdn$260,000 ($235,000 in U.S. dollars) available to reduce future Canadian federal income taxes payable which will expire between 2022 and 2032.
(c) | As of March 29, 2014, Mayors had federal and state net operating loss carry forwards in the U.S. of approximately $106.4 million and $98.3 million, respectively. Due to Section 382 limitations from the change in ownership for the year ended March 29, 2003, the utilization of approximately $35.3 million of the pre-acquisition net operating loss carry forwards is limited to approximately $953,000 on an annual basis through 2022. The federal net operating loss carry forwards expire beginning in fiscal 2020 through fiscal 2033 and the state net operating loss carry forwards expire beginning in fiscal 2018 through fiscal 2033. Mayors also has an alternative minimum tax credit carry forward of approximately $1.0 million to offset future federal income taxes.

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- 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
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