Income Taxes

3 Months Ended

Mar. 27, 2012

Income Taxes [Abstract]

Income Taxes

Note 5 – Income Taxes

For the 13 weeks ended March 27, 2012, the Company recorded income tax expense of $3.0 million which resulted in an effective income tax rate of 24.7% compared to income tax expense of $4.3 million or an effective tax rate of 30.9% during the prior year quarter. The lower than statutory rate for both periods was primarily attributable to tax credits.

The Company files a consolidated US federal tax return with the parent company, NPC Holdings. The Company generally allocates taxes between it and the parent company (NPC Holdings) utilizing the separate return method.

The liability for uncertain tax positions was $5.1 million as of March 27, 2012, was considered long term and was included in other deferred items in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance at December 27, 2011	$	9,527
Purchase accounting adjustments		(6,682	)
Additions based on tax positions related to the current year		2,249
Balance at March 27, 2012	$	5,094