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Income Taxes
9 Months Ended
Sep. 29, 2012
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 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.
The Company's effective income tax rate for the 13-week period ended September 29, 2012 was 39.4%, which resulted in a provision of $6.7 million, while the effective tax rate for the 13-week period ended October 1, 2011 was 11.4%, which resulted in a provision of $1.4 million. The Company's effective income tax rate for the 39-week period ended September 29, 2012 was 40.0%, which resulted in a provision of $17.7 million, while the effective tax rate for the 39-week period ended October 1, 2011 was (8.1)%, which resulted in a benefit of $3.3 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 has returned to a more normalized effective tax rate this year. The Company continues to maintain a valuation allowance in the amount of $1.7 million against its South Carolina state tax credits until or unless sufficient positive evidence exists to support the reversal of this valuation allowance.