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Income Taxes
 12 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes
(9) Income Taxes

Income tax expense for fiscal 2012, fiscal 2011 and fiscal 2010, consisted of the following:

 

                         
    2012     2011     2010  

Current expense:

                        

Federal

   $ 6,538     $ 2,959     $ 2,439  

State

     1,197       437       504  
   

 

 

    

 

 

    

 

 

  
      7,735       3,396       2,943  

Deferred expense

     976       932       2,640  
   

 

 

    

 

 

    

 

 

  

Total expense

   $ 8,711     $ 4,328     $ 5,583  
   

 

 

    

 

 

    

 

 

  

 

The difference between income taxes computed by applying the statutory federal income tax rates of 35%, 34% and 34% in fiscal 2012, fiscal 2011 and fiscal 2010, respectively, and income tax expense reported in the consolidated statements of income is:

 

                         
    2012     2011     2010  

Computed “expected” tax expense

   $ 8,141     $ 4,025     $ 5,094  

State income taxes expense, net of federal income tax

     915       361       437  

Revaluation of net deferred tax assets

     (338 )      —         —    

Other, net

     (7 )      (58 )      52  
   

 

 

    

 

 

    

 

 

  

Total expense

   $ 8,711     $ 4,328     $ 5,583  
   

 

 

    

 

 

    

 

 

  

The tax effects of temporary differences and loss carryforwards that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below.

 

                 
    2012     2011  

Deferred tax assets:

                

Current assets

   $ 895     $ 1,267  

Accrued expenses

     1,366       795  

Pension liability

     6,806       5,663  

Interest rate contract liability

     175       95  

Acquisition intangible assets and expenses

     —         99  

Capital loss carryforward

     508       482  
   

 

 

    

 

 

  

Total deferred tax assets

     9,750       8,401  

Less valuation allowance

     (508 )      (482 ) 
   

 

 

    

 

 

  

Deferred tax assets, net

     9,242       7,919  

Deferred tax liabilities:

                

Accrued pension costs

     2,559       1,509  

Acquisition intangible assets and expenses

     270       —    

Prepaid insurance

     70       66  

Property, plant and equipment

     108       45  
   

 

 

    

 

 

  

Total deferred tax liabilities

     3,007       1,620  
   

 

 

    

 

 

  

Net deferred tax assets

   $ 6,235     $ 6,299  
   

 

 

    

 

 

  

During fiscal 2012, the Company concluded, based on its forecast of future operations and estimated federal, state and local effective tax rates, the likely rate at which net temporary difference will reversed has changed. Accordingly, deferred tax assets and liabilities, as of the beginning of fiscal 2012, have been revalued at the new higher tax rate resulting in a deferred tax benefit of $338, which was recorded during the fourth quarter.

The net temporary differences incurred to date will reverse in future periods as the Company generates taxable earnings. The Company believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets recorded. The Company records a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

 

The Company generated a capital loss deferred tax asset is subject to expiration after five years. Capital gains generated by the Company during the period prior to expiration can be utilized to offset the capital loss deferred tax asset. At the end of fiscal 2012 and fiscal 2011, the Company has recorded a valuation allowance of $508 and $482, respectively.

At the end of fiscal 2012, fiscal 2011 and fiscal 2010, there were no net operating loss carryforwards available for U.S. federal, state, and local income tax purposes. All net operating loss carryforwards were used during fiscal 2010, and the Company recognized both deferred prior year and current year excess tax benefits as additional paid in capital during fiscal 2010.

FASB ASC 740-10 (the overall Subtopic of topic 740 on income taxes) prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not record an accrual for tax related uncertainties or unrecognized tax positions at the end of fiscal 2012 or the end of fiscal 2011. The Company does not expect a change to the reserve for uncertain tax positions within the next twelve months that would have a material impact on the consolidated financial statements.

The Company recorded no interest or penalties during or at the end of fiscal 2012, fiscal 2011 and fiscal 2010 in either its consolidated statement of income or consolidated balance sheet.

The Company files a consolidated U.S. Federal income tax return and consolidated and separate company income tax returns in various state and local jurisdictions. Generally, the Company is no longer subject to income tax examinations by federal tax authorities through the tax year ended June 28, 2008 and by state and local tax authorities for the tax years through June 30, 2007.