Income Taxes

9 Months Ended

Oct. 08, 2011

Income Taxes [Abstract]

Income Taxes

14. INCOME TAXES

The company's effective tax rate for the twelve and forty weeks ended October 8, 2011 was 35.4% and 35.2% respectively. The current year effective rate is slightly higher than the fiscal 2010 annual effective tax rate of 34.9% which included the benefit of favorable discrete items. The difference in the effective rate and the statutory rate is primarily due to state income taxes, and the Section 199 qualifying production activities deduction. The Tasty acquisition materially affected deferred taxes for the year. Additional information regarding this transaction is available in Note 4, Acquisition.

During the twelve weeks ended October 8, 2011, the company's activity with respect to its uncertain tax positions and the related interest expense accrual was immaterial. The company's only material activity during the current year relates to the $4.9 million increase related to the Tasty acquisition. At this time, we do not anticipate any other significant changes to the amount of gross unrecognized tax benefits over the next twelve months.