Note 14 - Income Taxes
|12 Months Ended|
Mar. 25, 2017
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
Following are the components of the provision for income taxes:
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets are as follows:
The following summarizes the difference between the income tax expense and the amount computed by applying the statutory federal income tax rate of
34%to income before income tax. The items comprising these differences consisted of the following for the fiscal years ended
March 25, 2017and
March 26, 2016:
The increase in valuation allowance from
March 26, 2016to
March 25, 2017was
March 25, 2017,the Company had pre-tax federal net operating loss carryforwards of
$43million and state net operating loss carryforwards of
$23million available to reduce future taxable income. The federal and state net operating loss carryforwards begin to expire from fiscal
2037,respectively. Utilization of net operating loss carryforwards
maybe subject to annual limitations due to certain ownership change limitations as required by Internal Revenue Code Section
382.The federal income tax credits begin to expire from
2037and state income tax credit carryforwards are carried forward indefinitely.
The Company has recorded a valuation allowance to reflect the estimated amount of deferred tax assets, which
notbe realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which those temporary differences become deductible. Management considers both positive and negative evidence and tax planning strategies in making this assessment.
March 25, 2017,the Company recorded unrecognized tax benefits of
$120,000related to uncertain tax positions. The unrecognized tax benefit is netted against the non-current deferred tax asset on the Consolidated Balance Sheet. The Company has
notrecorded a liability for any penalties or interest related to the unrecognized tax benefits.
The Company files U.S federal and California state tax returns. The Company is generally
nolonger subject to tax examinations for years prior to the fiscal year
2012for federal purposes and fiscal year
2011for California purposes, except in certain limited circumstances. The Company does have a California Franchise Tax Board audit that is currently in process. The Company is working with the California Franchise Tax Board to resolve all audit issues and does
notbelieve any material taxes or penalties are due. However, as a result of the ongoing examination, the Company eliminated certain income tax credit carryovers. The write-off of these income tax credit carryovers had
noimpact on total income tax expense as the majority had an uncertain tax position reserve with the balance having a full valuation allowance against the deferred tax asset.
A reconciliation of the beginning and ending amount of the liability for uncertain tax positions, excluding potential interest and penalties, is as follows:
The total amount of interest and penalties related to unrecognized tax benefits at
March 25, 2017is
notmaterial. The amount of tax benefits that would impact the effective rate, if recognized, is
notexpected to be material. The Company does
notanticipate any significant changes with respect to unrecognized tax benefits within next
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef