Income Taxes (Tables)

12 Months Ended

Dec. 29, 2012

Income tax expense (benefit) [Table Text Block]

Income tax expense consisted of the following (in thousands):



Current:	2012		2011		2010
Federal	$	34,993	$	23,481	$	15,812
State	3,419		3,622		758
	38,412		27,103		16,570
Deferred:
Federal	2,176		2,434		564
State	1,323		405		1,788
	3,499		2,839		2,352
Income tax expense	$	41,911	$	29,942	$	18,922

Reconciliation of income tax expense (benefit) at the statutory federal rate [Table Text Block]

The following table provides a reconciliation between the statutory federal income tax rate and our effective income tax rate:



	2012		2011		2010
Statutory federal income tax	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	2.9		3.2		2.9
Manufacturing deduction	(3.1	)	(2.9	)	(2.7	)
Changes in unrecognized tax benefits	(0.2	)	(0.8	)	1.8
Other	0.3		(1.4	)	0.5
Effective income tax rate	34.9	%	33.1	%	37.5	%

Deferred income taxes [Table Text Block]

The tax effects of temporary differences that give rise to deferred income taxes were as follows (in thousands):



Deferred tax assets:	2012			2011
Current:
Compensation and benefits	$	1,448		$	1,175
Warranty and returns liabilities	3,040			2,492
Deferred rent and lease incentives	867			862
Other	246			107
Long-term:
Property and equipment	—			1,119
Stock-based compensation	8,061			6,380
Deferred rent and lease incentives	3,237			2,411
Warranty liability	563			1,047
Net operating loss and capital loss carryforwards	1,339			2,090
Other	459			417
Total gross deferred tax assets	19,260			18,100
Valuation allowance	(647		)	(693		)
Total deferred tax assets after valuation allowance	18,613			17,407
Deferred tax liabilities:
Long-term:
Property and equipment	4,701			—
Total gross deferred tax liabilities	4,701			—
Net deferred tax assets	$	13,912		$	17,407

Reconciliation of unrecognized tax benefits [Table Text Block]

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for 2012, 2011 and 2010 was as follows (in thousands):



	Federal and State Tax
	2012			2011			2010
Beginning balance	$	425		$	1,354		$	1,375
Increases related to prior-year tax positions	—			355			621
Decreases related to prior-year tax positions	(230		)	—			(572		)
Settlements with taxing authorities	—			(1,506		)	(138		)
Lapse of statute of limitations	—			(70		)	—
Increases related to current-year tax positions	18			292			68
Ending balance	$	213		$	425		$	1,354

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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