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Income Taxes
 6 Months Ended
Jul. 01, 2012
Income Tax Expense (Benefit) [Abstract]  
Income Taxes
The provision (benefit) for income taxes for the three and six months ended July 1, 2012 and July 3, 2011 was comprised of the following:
 
 
Three Months Ended July 1, 2012
 
Six Months Ended July 1, 2012
 
2012
 
2011
 
2012
 
2011
Current
$
1,115

 
$
(1,506
)
 
$
(174
)
 
$
(4,223
)
Deferred
(3,897
)
 
2,182

 
(2,099
)
 
2,182

 
$
(2,782
)
 
$
676

 
$
(2,273
)
 
$
(2,041
)

The benefit for income taxes for the three and six months ended July 1, 2012 was derived using an estimated effective annual income tax rate for all of 2012 of 42.9%, which excludes any discrete tax adjustments. Discrete tax adjustments decreased the benefit for income taxes by $0.3 million in both the three and six months ended July 1, 2012.
The provision (benefit) for income taxes for the three and six months ended July 3, 2011 was derived using an effective annual income tax rate for 2011 of 76.7%, which excludes any discrete tax adjustments. The 2011 effective tax rate is higher than 2012 due to a disproportional level of employment related tax credits in 2011. Discrete tax adjustments decreased the provision for income taxes by $0.1 million in both the three and six months ended July 3, 2011.
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of July 1, 2012 and January 1, 2012, the Company had no unrecognized tax benefits and no accrued interest related to uncertain tax positions.
The tax years 2008-2011 remain open to examination by the major taxing jurisdictions to which the Company is subject. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase within the next twelve months due to the uncertainties regarding the timing of any examinations, the Company does not expect unrecognized tax benefits to significantly change in the next twelve months.