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Income Taxes
9 Months Ended
Oct. 03, 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 the 13-week period ended October 3, 2015 was 43.0%, which resulted in a provision of $3.7 million, while the effective tax rate for the 13-week period ended September 27, 2014 was 49.5%, which resulted in a provision of $4.8 million. The Company's effective income tax rate for the 39-week period ended October 3, 2015 was 43.6%, which resulted in a provision of $12.0 million, while the effective tax rate for the 39-week period ended September 27, 2014 was 46.8%, which resulted in a provision of $10.8 million. The decrease in the effective tax rate was due largely to a change in valuation allowances.
The Company maintains a valuation allowances against its California Enterprise Zone credits in the amount of $3.9 million, against its South Carolina state tax credits in the amount of $0.9 million, and against its Canadian net deferred tax assets in the amount of $1.4 million. 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 October 3, 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 2011, as well as all state and foreign jurisdictions through 2010 and 2007, respectively.