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Income Taxes
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3 Months Ended |
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Mar. 31, 2012
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| Income Taxes [Abstract] | |
| Income Taxes |
Note 9 – Income Taxes As discussed in "Note 1 – Summary of Significant Accounting Policies and Nature of Operations", the Company applies the current U.S. GAAP on accounting for uncertain tax positions, which prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that has greater than 50 percent likelihood of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. As of March 31, 2012, the Company had no material unrecognized tax benefits, interest or penalties related to federal and state income tax matters. The Company's policy is to record interest and penalties as income tax expense. The Company is subject to U.S. federal income tax as well as income tax of foreign and state tax jurisdictions. The tax years 2007-2011 remain open to examination by the major taxing jurisdictions to which the Company is subject, except the Internal Revenue Service for which the tax years 2009-2011 remain open. The Company does not anticipate a significant change to the amount of unrecognized tax benefits within the next twelve months. For the thirteen weeks ended March 31, 2012 and April 2, 2011, the effective tax rate for the Company was (18.7)% and (10.0)%, respectively. The Company's effective tax rate for the thirteen weeks ended March 31, 2012 differed from the U.S. federal statutory rate primarily as a result of the recording of valuation allowance against the pre-tax losses and the increase in deferred tax liabilities related to tax deductible indefinite-lived intangible assets, as well as tax expense incurred outside of the U.S. The Company's effective tax rate for the thirteen weeks ended April 2, 2011 differed from the U.S. federal statutory rate primarily as a result of the recording of further valuation allowance against the pre-tax losses and state taxes due to law changes that resulted in additional tax expense on the Company's deferred tax liabilities. |