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Income Taxes
3 Months Ended
Mar. 26, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the 13 weeks ended March 26, 2013, the Company recorded income tax expense of $2.4 million which resulted in an effective income tax rate of 15.2% compared to income tax expense of $3.0 million or an effective income tax rate of 24.7% during the first quarter of 2012. For the 13 weeks ended March 26, 2013, the lower than statutory rate was primarily due to tax credits and a $1.4 million favorable tax adjustment related to previously unrecognized prior year federal employment-related credits that were recognized upon extension of the credits on January 2, 2013. The lower than statutory rate for the 13 weeks ended March 27, 2012 was primarily attributable to federal employment-related tax credits.
The Company files a consolidated US federal tax return with its parent company, NPC Holdings. The Company allocates taxes between it and the Parent utilizing the separate return method.
The liability for uncertain tax positions was $4.4 million and $4.6 million as of March 26, 2013 and December 25, 2012, respectively, was considered long term and was included in other deferred items in the Consolidated Balance Sheets.