INCOME TAXES	9 Months Ended
Sep. 28, 2013
INCOME TAXES
INCOME TAXES	12. INCOME TAXES The Company accounts for income taxes in accordance with “Income Taxes”, Topic 740 of the FASB ASC. This guidance requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities, using applicable tax rates for the years in which the differences are expected to reverse. At December 29, 2012, the Company maintained $10.2 million of net deferred tax assets. During the 39-week period ended September 28, 2013, the Company recorded income tax expense of $10.2 million as a result of a full valuation allowance recorded against its net deferred tax assets. Federal valuation allowances totaled $22.3 million, $8.3 million and $5.8 million at September 28, 2013, December 29, 2012 and September 29, 2012, respectively. State valuation allowances totaled $4.2 million, $675,000 and $638,000 at September 28, 2013, December 29, 2012 and September 29, 2012, respectively. The valuation allowances are primarily to reserve for the possible non-utilization of net operating loss carry-forwards which may not be realized in future periods before they expire. At September 28, 2013, the Company had an estimated federal net operating loss carry-forward of approximately $53.5 million available for carry-forward expiring from 2030 through 2033. At December 29, 2012 and September 29, 2012, the current portion of net deferred tax assets and liabilities of $352,000 and $388,000, respectively, were included in prepaid expenses and other current assets, while the non-current portion of net deferred tax assets and liabilities of $9.9 million and $10.4 million were included in other assets on the Company’s accompanying condensed consolidated balance sheets. These amounts are net of the valuation allowances discussed above. When tax contingencies become probable, a liability for the contingent amount is estimated based upon the Company’s best estimation of the potential exposures associated with the timing and amount of deductions, as well as various tax filing positions. As of September 28, 2013, December 29, 2012 and September 29, 2012, the Company had no reserve recorded for potential tax contingencies.

INCOME TAXES

9 Months Ended

Sep. 28, 2013

12. INCOME TAXES

The Company accounts for income taxes in accordance with “Income Taxes”, Topic 740 of the FASB ASC. This guidance requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities, using applicable tax rates for the years in which the differences are expected to reverse. At December 29, 2012, the Company maintained $10.2 million of net deferred tax assets. During the 39-week period ended September 28, 2013, the Company recorded income tax expense of $10.2 million as a result of a full valuation allowance recorded against its net deferred tax assets. Federal valuation allowances totaled $22.3 million, $8.3 million and $5.8 million at September 28, 2013, December 29, 2012 and September 29, 2012, respectively. State valuation allowances totaled $4.2 million, $675,000 and $638,000 at September 28, 2013, December 29, 2012 and September 29, 2012, respectively. The valuation allowances are primarily to reserve for the possible non-utilization of net operating loss carry-forwards which may not be realized in future periods before they expire. At September 28, 2013, the Company had an estimated federal net operating loss carry-forward of approximately $53.5 million available for carry-forward expiring from 2030 through 2033.

At December 29, 2012 and September 29, 2012, the current portion of net deferred tax assets and liabilities of $352,000 and $388,000, respectively, were included in prepaid expenses and other current assets, while the non-current portion of net deferred tax assets and liabilities of $9.9 million and $10.4 million were included in other assets on the Company’s accompanying condensed consolidated balance sheets. These amounts are net of the valuation allowances discussed above.

When tax contingencies become probable, a liability for the contingent amount is estimated based upon the Company’s best estimation of the potential exposures associated with the timing and amount of deductions, as well as various tax filing positions. As of September 28, 2013, December 29, 2012 and September 29, 2012, the Company had no reserve recorded for potential tax contingencies.