Income Taxes

9 Months Ended

Sep. 11, 2011

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

During the first three quarters of 2011, the Company reduced its liability for unrecognized tax benefits related to a state income tax matter by approximately $0.5 million. Approximately $0.3 million of the decrease was related to gross unrecognized tax benefits and approximately $0.2 million was related to interest. As a result, approximately $0.2 million was recognized as an income tax benefit and reduced the Company's effective tax rate in the first three quarters of 2011. The effective tax rate for the third quarter and first three quarters of 2011 was positively impacted by higher wage related credits in 2011.

During the first three quarters of 2010, and as a result of a retroactive change to state law, the Company reduced its liability for unrecognized tax benefits related to a state income tax matter by approximately $2.9 million. Approximately $1.9 million of the decrease was related to gross unrecognized tax benefits and approximately $1.0 million was related to interest and penalties. As a result, approximately $1.7 million was recognized as an income tax benefit and reduced the Company's effective tax rate in the first three quarters of 2010.