Income Taxes

6 Months Ended

Jun. 24, 2012

Income Taxes [Abstract]

INCOME TAXES

NOTE 7. INCOME TAXES

During the three and six months ended June 24, 2012 the Company’s income tax provision reflects the benefit of the reversal of state tax reserves relating to the favorable settlements of state tax audits and state statute lapses. These reserve reversals are the primary driver of the effective benefit rates of 15.1% and 28.2% for each period. As a result of these reserve reversals, the Company’s unrecognized tax benefits decreased from $30.5 million at December 25, 2011 to $15.9 million at June 24, 2012. It is reasonably possible that unrecognized tax benefits may further decrease by $8.1 million in the next twelve months. The potential additional decrease in the next twelve months would be attributable to state statute lapses.