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Income Taxes
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6 Months Ended |
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Jun. 30, 2013
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| Income Tax Disclosure [Abstract] | |
| Income Taxes |
INCOME TAXES
The effective income tax rate for the twenty-six weeks ended June 30, 2013 was 27.2% compared to an effective income tax rate of 29.9% for the twenty-six weeks ended June 24, 2012. The decrease in the effective income tax rate from the prior year was primarily attributable to the favorable impact of a one time adjustment made for incremental employment tax credits for the current year as well as the previous open tax years, which resulted in a $556,000 net favorable impact in net income during the twenty-six week period ended June 30, 2013. The decrease in the effective income tax rate was partially offset by the unfavorable impact of the non-tax deductible secondary offering costs incurred during the current twenty-six week period ended June 30, 2013. The impact on the effective income tax rate for these items will be treated discretely in this twenty-six week period as required by the Financial Accounting Standards Board's Accounting Standards Codification. The effective income tax rate for 2013 excluding these discrete items is estimated to be approximately 30%.
Since the company has net operating loss carry forwards, the net favorable tax benefit mentioned above will primarily increase the general business credits deferred tax asset.
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