XML 69 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes
6 Months Ended
Jun. 25, 2013
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
For the 26 weeks ended June 25, 2013, the Company recorded income tax expense of $5.0 million which resulted in an effective income tax rate of 18.9% compared to income tax expense of $4.1 million or an effective income tax rate of 25.4% during the prior year. For the 26 weeks ended June 25, 2013, the lower than statutory rate was primarily due to tax credits and a $1.6 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 26 weeks ended June 26, 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 $4.0 million and $4.6 million as of June 25, 2013 and December 25, 2012, respectively, was considered long term and was included in other deferred items in the Consolidated Balance Sheets.