Income Taxes

9 Months Ended

Sep. 29, 2012

Income Taxes

(4) Income Taxes

The provisions for income taxes for the 2012 and 2011 thirty-nine-week periods were based on estimated full year combined effective income tax rates of approximately 37.8% and 38.2%, respectively, which were higher than the statutory federal income tax rate primarily as a result of state taxes, the meals and entertainment exclusion and non-deductible stock-based compensation. The decrease in the effective income tax rate in the 2012 thirty-nine-week period compared to the 2011 thirty-nine-week period was due to income tax benefits recognized in 2012 upon the disqualifying disposition of the Company’s common stock by employees who obtained the stock through exercises of incentive stock options.