Income Taxes

3 Months Ended

Mar. 30, 2013

Income Taxes

(2) Income Taxes

The provisions for income taxes for the 2013 and 2012 thirteen-week periods were based on estimated full year combined effective income tax rates of approximately 37.3% and 36.7%, respectively, which were higher than the statutory federal income tax rate primarily as a result of state taxes, the meals and entertainment exclusion and non-deductible stock-based compensation. The increase in the effective income tax rate in the 2013 thirteen-week period compared to the 2012 thirteen-week period was due to lower income tax benefits recognized in 2013 compared to 2012 resulting from disqualifying dispositions of the Company’s common stock by employees who obtained the stock through exercises of incentive stock options during each year.