Income Taxes (Tables)

12 Months Ended

Jan. 02, 2015

Income Tax Disclosure [Abstract]

Total Income Tax Expense

Total income tax expense for the fiscal years ended January 2, 2015, January 3, 2014 and December 28, 2012 consisted of the following:

			Fiscal Years
(In thousands)	2014		2013		2012
Current
Federal	$	26,647	$	22,468	$	23,562
Foreign		896		1,411		852
State		5,798		4,824		4,304
		33,341		28,703		28,718
Deferred
Federal		(5,059)		(2,703)		(3,378)
State		(1,018)		(695)		(816)
		(6,077)		(3,398)		(4,194)
Total	$	27,264	$	25,305	$	24,524

Reconciliation of Effective Income Tax Rate

The Company’s effective tax rate differs from the statutory federal tax rate of 35% as shown in the following schedule:

				Fiscal Years
(In thousands)	2014			2013			2012
Tax at federal statutory rate	$	23,788		$	22,381		$	21,612
State taxes, net of federal benefit		3,226			2,819			2,409
Tax exempt interest income		(44)			(36)			(104)
Non-deductible expenses		289			226			296
Non-deductible stock-based compensation		-			(79)			(40)
Other		5			(6)			351
Tax expense	$	27,264		$	25,305		$	24,524
Effective tax rate		40.1	%		39.6	%		39.7	%

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 2, 2015 and January 3, 2014 are presented in the following schedule:

	Fiscal Years
(In thousands)	2014		2013
Deferred tax assets:
Accrued liabilities and allowances	$	17,244	$	15,539
Deferred compensation		26,873		22,373
Other		28		-
Total deferred tax assets		44,145		37,912
Deferred tax liabilities:
State taxes		(1,717)		(1,519)
Deductible goodwill		(2,978)		(2,925)
Property, equipment and leasehold improvements		(459)		(622)
Unrealized gain of deferred compensation plan assets		(3,377)		(3,215)
Other		-		(394)
Total deferred tax liabilities		(8,531)		(8,675)
Net deferred tax assets	$	35,614	$	29,237

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance at December 28, 2012	$	908,000
Additions based on tax positions related to the current year		316,000
Additions for tax positions of prior years		-
Reductions due to lapse of statute of limitations		(77,000)
Reductions due to change in accounting method		-
Settlements		-
Balance at January 3, 2014	$	1,147,000
Additions based on tax positions related to the current year		486,000
Additions for tax positions of prior years		-
Reductions due to lapse of statute of limitations		(87,000)
Reductions due to change in accounting method		-
Settlements		-
Balance at January 2, 2015	$	1,546,000