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Income Taxes
6 Months Ended
Jul. 04, 2015
Income Tax Disclosure [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 Company's effective income tax rate for both the 13-week period ended July 4, 2015 and June 28, 2014 was 43.6%, which resulted in a provision of $16.2 million and $14.1 million, respectively. The Company's effective income tax rate for the 26-week period ended July 4, 2015 was 43.9%, which resulted in a provision of $8.4 million, while the effective tax rate for the 26-week period ended June 28, 2014 was 44.9%, which resulted in a provision of $5.9 million. The decrease in the effective tax rate was due largely to a change in valuation allowances.
The Company continues to maintain a valuation allowance against its California Enterprise Zone credits in the amount of $4.3 million, as well as a $1.3 million valuation allowance against South Carolina state tax credits. In addition, the Company maintains a valuation allowance in the amount of $1.4 million against its Canadian net deferred tax assets, due to the Company's decision to exit Canada. The Company continues to monitor and adjust these valuation allowances based on current evaluations of its ability to realize these deferred tax assets.
During the 13-week period ended July 4, 2015, the Company recognized less than $0.1 million expense related to uncertain tax positions, including accrued interest and penalties.
The Company files income tax returns in the U.S. federal jurisdiction, various states and cities, Puerto Rico and Canada. The Company has substantially settled all federal income tax matters through 2010, as well as all state and foreign jurisdictions through 2009 and 2007, respectively.