Income Taxes

9 Months Ended

Sep. 23, 2012

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

We had an income tax benefit of $2.8 million (effective tax rate of 42.6%) in the third quarter of 2012 and an income tax expense of $27.7 million (effective tax rate of 39.5%) in the first nine months of 2012.

We had an effective tax rate of 66.1% in the third quarter of 2011 primarily driven by the impact of the gain on sale of 390 of our units in Fenway Sports Group and the charge in connection with the prepayment of our 14.053% Notes. The effective tax rate for the first nine months of 2011 is not meaningful given the near break-even results.

It is reasonably possible that certain income tax examinations may be concluded, or statutes of limitation may lapse, before the end of our fiscal year 2013, which could result in a decrease in unrecognized tax benefits of approximately $19 million that would, if recognized, impact the effective tax rate.