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Income Taxes
6 Months Ended
Jun. 20, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective income tax rates were 38.4% and 40.5% for the twelve weeks ended June 20, 2017 and June 14, 2016, respectively. The provision for income taxes consisted of income tax expense of $3.3 million for both the twelve weeks ended June 20, 2017 and June 14, 2016. The effective income tax rates were 39.1% and 40.8% for the twenty-four weeks ended June 20, 2017 and June 14, 2016, respectively. The provision for income taxes consisted of income tax expense of $6.2 million and $5.5 million for the twenty-four weeks ended June 20, 2017 and June 14, 2016, respectively.
The income tax expense for the twelve weeks ended June 20, 2017 is driven by the estimated effective income tax rate of 38.4% which primarily consists of statutory federal and state tax rates based on apportioned income, partially offset by federal targeted job credits. The income tax expense for the twelve weeks ended June 14, 2016 is driven by the estimated effective income tax rate of 40.5% which primarily consists of statutory federal and state tax rates based on apportioned income, as well as providing for deferred tax liabilities for the excess of the amount for financial reporting over the tax basis of an investment in a domestic subsidiary, partially offset by federal targeted job credits.
The income tax expense for the twenty-four weeks ended June 20, 2017 is driven by the estimated effective income tax rate of 39.1% which primarily consists of statutory federal and state tax rates based on apportioned income, partially offset by federal targeted job credits. The income tax expense for the twenty-four weeks ended June 14, 2016 is driven by the estimated effective income tax rate of 40.8% which primarily consists of statutory federal and state tax rates based on apportioned income, as well as providing for deferred tax liabilities for the excess of the amount for financial reporting over the tax basis of an investment in a domestic subsidiary, partially offset by federal targeted job credits.
Management believe it is more likely than not that all deferred tax assets will be realized and therefore no valuation allowance as of June 20, 2017 and January 3, 2017 is required.