v2.4.0.6
INCOME TAXES
 6 Months Ended
Sep. 27, 2012
INCOME TAXES  
INCOME TAXES

NOTE 9—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  
(In thousands)
  From Inception
August 31, 2012
through
September 27, 2012 		  March 30, 2012
through
August 30, 2012 		  Twenty-six
Weeks Ended
September 29, 2011 		 
 
   (Successor)
   (Predecessor)
   (Predecessor)
  

Income tax expense at the federal statutory rate

   $ (15,050 ) $ 21,450   $ (2,665 )

Effect of:

                    

State income taxes

     100     2,500     1,070  

Permanent items

     —     100     140  

Change in ASC 740 (formally FIN 48) reserve

     —     —     (1,435 )

Valuation allowance

     15,050     (21,550 )   3,960  
               

Income tax expense

   $ 100   $ 2,500   $ 1,070  
               

Effective income tax rate

     (0.2 )%   4.1 %   (14.1 )%
               

        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 current period decrease related to ASC 740, Income Taxes, (formally FIN 48) reserve includes increases for the current year positions of $600,000 and decreases related to cash settlements of $900,000.

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