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Income Taxes
9 Months Ended
Oct. 01, 2011
Income Tax Expense (Benefit) [Abstract] 
Income Taxes
INCOME TAXES

The Company calculates its interim income tax provision by estimating the annual effective tax rate and applying that rate to its year-to-date ordinary earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effect of changes in tax laws, rates or status is recognized in the interim period in which the change occurs.
The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences as a result of differences between amounts measured and recognized in accordance with tax laws and financial accounting standards, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision (benefit) for income taxes may change as events occur, additional information is obtained or as the tax environment changes.
The Company's effective income tax rate for the 13-week period ended October 1, 2011 was 11.4%, which resulted in an expense of $1.4 million, while the effective tax rate for the 13-week period ended October 2, 2010 was 2.7%, which resulted in an expense of $0.2 million. The Company's effective income tax rate for the 39-week period ended October 1, 2011 was a benefit of 8.1%, which resulted in a benefit of $3.3 million, while the effective tax rate for the 39-week period ended October 2, 2010 was 3.4%, which resulted in an expense of $1.2 million.
During the second fiscal quarter of 2011, the Company determined that it was more likely than not that it would have sufficient future taxable income to utilize the majority of its deferred tax assets and, as a result, released approximately $15.7 million of the valuation allowance against these assets. The Company continues to maintain a valuation allowance against South Carolina tax credits of approximately $1.7 million that will begin to expire in fiscal 2013. These deferred tax assets will remain subject to a valuation allowance until future circumstances indicate they may be realized or until they expire. The Company will continue to evaluate its ability to realize deferred tax assets on a quarterly basis and adjust the valuation allowance against these deferred tax assets accordingly. The Company evaluates its effective income tax rate on a quarterly basis and updates its estimate of the full-year effective income tax rate as necessary.