Income Taxes

3 Months Ended

Mar. 23, 2013

Income Tax Disclosure [Text Block]

Note 7 – Income Taxes

For the first quarter of 2013 and 2012, our income tax expense was $0.9 million and $3.6 million, respectively.

                The provision for income taxes reflects the Company’s estimate of the effective rate expected to be applicable for the full fiscal year, adjusted for any discrete events, which are reported in the period that they occur.  This estimate is re-evaluated each quarter based on the Company’s estimated tax expense for the full fiscal year.  The first quarter 2013 Company effective tax rate was not impacted by the reversal of any previously unrecognized tax benefits due to statute of limitations expirations.  For the first quarter of 2013, our effective tax rate was 30.5% as compared to 39.9% for the first quarter of 2012.

The total amount of unrecognized tax benefits as of the end of the first quarter of 2013 was $2.0 million.  There was no net change in unrecognized tax benefits since December 29, 2012.  The total amount of tax benefits that if recognized would impact the effective tax rate was $0.3 million at the end of the first quarter of 2013.  We recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense.  At the end of the first quarter of 2013, we had approximately $0.1 million for the payment of interest and penalties accrued.

We do not expect our unrecognized tax benefits to change significantly over the next 12 months.

                The Company or its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and local jurisdictions.  With few exceptions, we are no longer subject to U.S. federal, state or local examinations by tax authorities for years 2008 and prior.  An audit by the Internal Revenue Service for our fiscal years 2010 and 2011 is scheduled to begin in the second quarter 2013.