v2.3.0.15
INCOME TAXES
6 Months Ended
Sep. 29, 2011
INCOME TAXES 
INCOME TAXES

NOTE 8—INCOME TAXES

        The difference between the effective tax rate on earnings from continuing operations before income taxes and the U.S. federal income tax statutory rate is as follows:

 
   Twenty-six Weeks Ended  
 
   September 29,
2011 		  September 30,
2010 		 

Income tax expense (benefit) at the federal statutory rate

   $ (3,100 ) $ 26,450  

Effect of:

              

State income taxes

     1,070     5,150  

Permanent items

     140     (50 )

Change in ASC 740 (formally FIN 48) reserve

     (1,435 )   —  

Valuation allowance

     4,395     (25,750 )

Other, net

     —     —  
           

Income tax expense

   $ 1,070   $ 5,800  
           

Effective income tax rate

     (12.1 )%   7.7 %
           

        The accounting for income taxes requires that deferred tax assets and liabilities be recognized, using enacted tax rates, for the tax effect of temporary differences between the financial reporting and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized.

        The state tax provision was for the states that impose their income based taxes on a gross sales method, that impose a margin tax or that have suspended the use of net operating loss carryforwards into the current tax year.

        The IRS has issued a Notice of Proposed Adjustment to the Company for the 2007-2009 fiscal years related to its investment in NCM. The proposed adjustment is not expected to materially impact the Company's financial statements and any payments of taxes and interest related to the proposed adjustment are expected to be negligible.