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Income Taxes
6 Months Ended
Jun. 29, 2013
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 June 29, 2013 was 40.7%, which resulted in a provision of $15.3 million, while the effective tax rate for the 13-week period ended June 30, 2012 was 40.6%, which resulted in a provision of $15.4 million. The Company's effective income tax rate for the 26-week period ended June 29, 2013 was 41.0%, which resulted in a provision of $9.3 million, while the effective tax rate for the 26-week period ended June 30, 2012 was 40.3%, which resulted in a provision of $11.1 million.
On July 11, 2013, the State of California enacted legislation that significantly changes the California Enterprise Zone Credits (EZ) program; the legislation is effective for tax years beginning on or after January 1, 2014. As of June 29, 2013, the Company has $4.3 million of deferred tax assets related to EZ credits available for use on future tax returns. The Company is currently in the process of evaluating the effect of the law on its ability to utilize the EZ credits on future tax returns; if it is determined that it is more likely than not that the Company will not be able to benefit from these credits, a valuation allowance equal to the portion estimated not to be realized prior to the newly-enacted expiration date will be recorded.