4. INCOME TAXES

The Company bases its consolidated effective income tax rate for interim periods on its forecasted annual consolidated effective income tax rate, which includes estimates of the taxable income and revenue for jurisdictions in which the Company operates. Total tax expense is then allocated between continuing operations and discontinued operations for the three and six months ended July 1, 2012. The following table presents the components of the Company’s provision for income taxes:


	For the three months ended					For the six months ended
(In thousands)	June 30, 2013		July 1, 2012			June 30, 2013		July 1, 2012
Provision for/(benefit from) income taxes:
Continuing operations	$	2,795	$	1,659		$	5,598	$	2,253
Discontinued operations		—		(220	)		—		(86	)

Provision for income taxes	$	2,795	$	1,439		$	5,598	$	2,167

The Company’s full-year forecasted effective income tax rate for continuing operations was 38% and 40.5% for the six months ended June 30, 2013 and July 1, 2012, respectively. The variances between the U.S. federal statutory rate of 35% and the Company’s forecasted effective income tax rate for the six months ended June 30, 2013 and July 1, 2012 are primarily due to state income taxes and permanent items that are not deductible for U.S. tax purposes.

As of June 30, 2013 and December 31, 2012, the Company’s reserve for uncertain tax positions totaled approximately $1.4 million and $2.3 million, respectively. The reduction of $0.9 million in reserves for uncertain tax positions resulted from a settlement with the Internal Revenue Service that occurred during the first quarter of 2013. This settlement resulted in cash payments totaling $0.6 million. Any additional changes in this reserve could impact the Company’s effective tax rate in subsequent periods. The Company recognizes interest and penalties related to uncertain income tax positions in interest expense and SG&A expenses, respectively, in its unaudited Condensed Consolidated Statements of Comprehensive Income. As of June 30, 2013 and December 31, 2012, the Company’s reserves for interest and penalties related to uncertain tax positions totaled approximately $0.2 million and $0.4 million, respectively.