Income Taxes (Notes)

3 Months Ended

Mar. 31, 2013

Income Tax Expense (Benefit) [Abstract]

Income Taxes

Income Taxes

The provision (benefit) for income taxes for the three months endedMarch 31, 2013 and April 1, 2012 was comprised of the following:

	Three Months Ended
	March 31, 2013			April 1, 2012
Current	$	(12	)	$	(1,290	)
Deferred	(5,284		)	1,798
	$	(5,296	)	$	508

The benefit for income taxes for the three months endedMarch 31, 2013 was derived using an estimated effective annual income tax rate for all of 2013 of 41.2%, which excludes any discrete tax adjustments. In January 2013, the United States Congress authorized, and the President signed into law, certain federal tax credits that will be reflected in the Company's Federal tax return for 2012. However, since the law was enacted in 2013, the financial statement benefit of such credits totaling $1.0 million was included in the benefit for income taxes in the consolidated statement of operations and comprehensive loss for the three months ended March 31, 2013.

Although the Company had a pretax loss in the first quarter of 2012, there was a provision for income taxes of $0.5 million in the three months endedApril 1, 2012 due to reclassifying tax differences to discontinued operations which resulted in pretax income for tax provision purposes. There were no discrete tax adjustments for the three months ended April 1, 2012.

The Company establishes a valuation allowance to reduce the carrying amount of deferred tax assets when it is more likely than not that it will not realize some portion or all of the tax benefit of its deferred tax assets. The Company performs the required assessment of positive and negative evidence regarding the realization of deferred income tax assets associated with certain state net operating loss carryforwards in accordance with ASC 740. The Company considers all available positive and negative evidence, including future reversals of existing temporary differences, projected future taxable income and recent financial operations, to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of these deferred income tax assets. Judgment is used in considering the relative impact of negative and positive evidence. In arriving at these judgments, the weight given to the potential effect of negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified. In evaluating the objective evidence provided by historical results, the Company considered the past three years of cumulative losses.

Based on the assessment described above, the Company has provided a valuation allowance at March 31, 2013 on all of the deferred income tax assets for certain state net operating loss carryforwards. If the Company determines that it is more likely than not that it will realize these deferred tax assets in the future, the Company will make an adjustment to the valuation allowance at that time.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of March 31, 2013 and December 30, 2012, the Company had no unrecognized tax benefits and no accrued interest related to uncertain tax positions.

The tax years 2009-2012 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.