Note 14 -- Correction of Prior Consolidated Financial Statements

In conjunction with the implementation of enhanced procedures during fiscal 2013 related to the reconciliation of deferred income tax assets and deferred income tax liabilities, we discovered an unreconciled difference in the basis of our book fixed assets basis as compared to our tax fixed assets basis. The basis difference arose during periods prior to our fiscal year end 2008. This difference resulted in an overstatement of deferred income tax liabilities as of April 30, 2010, April 29, 2011 and April 27, 2012.

In accordance with applicable accounting guidance, an adjustment to the financial statements for each individual prior period presented is required to reflect the correction of the period-specific effects of the change, if material. Based on our evaluation of relevant quantitative and qualitative factors, we determined the identified correction is immaterial to all of the Company's individual prior period consolidated financial statements, however, the cumulative correction of the prior period error would be material to our current year Consolidated Statement of Operations. Consequently, we have restated retained earnings as of April 30, 2010, by the cumulative effect of the error of $3,650 and made corresponding corrections to reflect the increase in retained earnings and the decrease in deferred income tax liabilities in the consolidated financial statements for the fiscal years ended April 29, 2011, and April 27, 2012, as reflected in the table below.

The table below summarizes the effect of the restatement of previously reported consolidated financial statements for the fiscal year ended April 29, 2011 and April 27, 2012 (in thousands