NOTE 8 - FEDERAL AND STATE INCOME TAXES

9 Months Ended

Sep. 28, 2013

NOTE 8 – FEDERAL AND STATE INCOME TAXES

The components of income tax expense (benefit) were as follows (amounts in thousands):

	For the Nine Months Ended
	September 28, 2013		September 29, 2012
Current	$	227	$	—
Deferred		—		5,606
Total tax expense (benefit)		227		5,606
Discontinued operations		—		1,557
Total tax expense (benefit)	$	227	$	7,163

The Company makes its interim tax allocation by applying estimated fiscal year effective tax rates to estimated fiscal year ordinary income together with unusual or infrequently occurring activity for the year-to-date period. The effective income tax rates for the three and nine month periods ended September 28, 2013 were 35.6% and 36.3%, respectively. As a result of the valuation allowance recorded against our deferred tax assets that existed as of September 29, 2012, the effective income tax rates for the three and nine month periods ended September 29, 2012 were not meaningful.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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