Taxes
 12 Months Ended
Apr. 26, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

Note 5 -- Income Taxes

 

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax liabilities and assets as of April 26, 2013, and April 27, 2012, were as follows:

        
    April 26, 2013  April 27, 2012
Deferred tax assets:     
 Loss on impaired assets$7,751 $7,866
 Self-insurance 5,927  7,724
 Vacation pay 1,796  2,296
 Stock and deferred compensation plans 20,718  20,219
 Accrued bonus 200  715
 Deferred rent 1,883  6,503
 Deferred proceeds on Mimi's Café sale 6,244   -
 State net operating loss carry forward 4,311   -
 Other 3,434  3,417
  Total deferred tax assets, gross 52,264  48,740
  Valuation allowance  (404)   -
  Net deferred tax assets  51,860   48,740
        
Deferred tax liabilities:     
 Accelerated depreciation/asset disposals 78,683  68,169
 Intangible assets 410  14,852
 Other 1,551  2,070
  Total deferred tax liabilities 80,644  85,091
  Net deferred tax liabilities$28,784 $36,351
        
The Company has federal net operating losses in the current year of $62,035 which will generate cash refunds from prior tax years. There are $87,705 of state net operating loss carry forwards that will expire at various times through 2033.
        

The following table summarizes the changes in the valuation allowance for fiscal 2013. There was no valuation allowance in fiscal 2012 or fiscal 2011.
   
  2013
Balance at Beginning of Period$ -
Changes in Related Gross Deferred Tax Assets/Liabilities  404
Balance at End of Period$ 404

        
Significant components of the (benefit) provision for income taxes are as follows:
        
Current: 2013 2012 2011
 Federal$(45,380)$28,742$31,356
 State 467 4,314 4,600
 Total current (44,913) 33,056 35,956
Deferred:      
 Federal (326) (5,388) (10,140)
 State (7,241) (528) (306)
 Total deferred (7,567) (5,916) (10,446)
 Total tax (benefit) provision$(52,480)$27,140$25,510
        

        
Our (benefit) provisions for income taxes differs from the amounts computed by applying the federal statutory rate due to the following:
        
   2013 2012 2011
(Benefit) provision at statutory rate$ (19,370)$ 34,997$ 27,885
State income tax (benefit) - net  (4,403)  2,461  2,791
FICA tip credits  (4,911)  (4,868)  (4,920)
Worthless stock  (20,855)  -  -
Settlement of state income tax audits (net)  -  (2,038)  -
Officers life insurance  (1,052)  (213)  (956)
Work opportunity tax credits  (1,172)  (1,157)  (769)
Reduction for uncertain tax positions of prior years  (341)  (1,178)  -
Other  (376)  (864)  1,479
 (Benefit) provision for income taxes$(52,480)$ 27,140$25,510
        

During the fiscal year we converted SWH Corporation, the operating company of Mimi's Cafe, into a limited liability company (“LLC”). As a result of converting SWH Corporation, we recognized a worthless stock deduction generating a permanent gross benefit of $59,586, the tax effect of which was a benefit of $20,855. After converting SWH Corporation to a LLC, we sold our membership interest in the LLC which was treated as an asset sale for tax purposes with no other permanent tax consequences.

Taxes paid during fiscal 2013, fiscal 2012 and fiscal 2011 were $34,458; $33,686; and $31,296, respectively.

In fiscal 2013, the amount of our unrecognized tax benefits decreased by $958, primarily due to additions for current year tax positions offset by reductions for settlements with taxing authorities and expiration of statute of limitations. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

       
  2013 2012 2011
Balance at beginning of fiscal year $ 11,042$ 11,022$ 9,086
Additions based on tax positions related to the current year  366  600  2,351
Additions for tax positions of prior years  -  2,600  -
Reductions for tax positions of prior years  (271)  (751)  -
Reductions due to settlements with taxing authorities  (799)  (1,936)  (53)
Reductions due to statute of limitations expiration   (254)  (493)  (362)
Balance at end of fiscal year $10,084$11,042$11,022
       

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of April 26, 2013, April 27, 2012 and April 29, 2011, was $7,658, $8,001 and $8,113, respectively. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain, but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate. We do not reasonably expect to resolve any tax audits in the next 12 months which could result in the recognition of previously unrecognized tax benefits and would affect the effective tax rate. It is reasonably possible that the amount of unrecognized tax benefits may increase or decrease within the next 12 months for reasons other than the settlement of tax audits. However, we do not presently anticipate that any increase or decrease in unrecognized tax benefits will be material to our consolidated financial statements.

 

We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense in the Consolidated Statements of Operations. During fiscal 2013, fiscal 2012 and fiscal 2011, we recognized approximately $447, $668 and $720, respectively, of interest and penalties in tax expense. As of April 26, 2013, and April 27, 2012, we had accrued approximately $3,102 and $2,986, respectively, in interest and penalties related to unrecognized tax benefits.

 

We file United States federal and various state and local income tax returns. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2009 through 2012. Our federal and state income tax return filings generally are subject to a three-year statute of limitations from the date of filing. However, we may grant waivers to taxing authorities to extend the statute of limitations for prior tax years. Based on the status of current audits and the protocol of finalizing audits by relevant tax authorities, it is not possible to estimate the impact of changes, if any, to previously recorded unrecognized tax benefits.