Income Taxes (Tables)

12 Months Ended

Dec. 28, 2013

Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) are as follows:


(in thousands)	2013		2012			2011
Current:
Federal	$	42,458	$	37,192		$	30,952
State		3,105		2,895			2,377

		45,563		40,087			33,329

Deferred:
Federal		249		(2,214	)		(1,927	)
State		18		(170	)		(70	)

		267		(2,384	)		(1,997	)

Total	$	45,830	$	37,703		$	31,332

Reconciliation of Income Taxes at Statutory Tax Rate to Company's Effective Tax Rate

The following is a reconciliation of income taxes at the statutory tax rate to the Company’s effective tax rate:


	2013			2012			2011
Federal taxes at statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal tax benefit		1.6			1.7			1.7
Proceeds from 2011 receipt of officer’s life insurance		—			—			(0.8	)
Stock-based compensation		—			0.1			0.1
Research and development tax credit		(0.7	)		(0.3	)		—
Other		—			(0.3	)		(0.2	)

Effective tax rate		35.9	%		36.2	%		35.8	%

Change in Uncertain Tax Benefits

The following table summarizes the change in uncertain tax benefits for the three years ended December 28, 2013:


(in thousands)	2013			2012			2011
Balance at beginning of year	$	1,785		$	2,161		$	2,532
Reductions due to lapses in statutes of limitations		(30	)		(44	)		(65	)
Reductions due to payments for tax positions settled		(271	)		(379	)		(702	)
Reductions due to reversals of prior year positions		(736	)		(651	)		(210	)
Additions based on tax positions taken during the current period		453			698			606

Balance at end of year	$	1,201		$	1,785		$	2,161

Reconciliation of Deferred Tax Assets and Liabilities

Deferred income taxes result from timing differences in the recognition of revenue and expense for tax and financial statement purposes. The sources of temporary differences are as follows:


(in thousands)	December 28, 2013		December 29, 2012
Assets:
Inventories	$	6,546	$	6,779
Accounts receivable		12,390		10,847
Accrued expenses		1,928		2,079
Other		417		1,764

Gross deferred tax assets		21,281		21,469

Liabilities:
Depreciation		9,136		3,367
Goodwill		9,343		9,231
Other		484		991

Gross deferred tax liabilities		18,963		13,589

Net deferred tax assets	$	2,318	$	7,880