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INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2013

Income Before Provision for Income Taxes

Income before provision for income taxes in 2011, 2012 and 2013 consists of the following (in thousands):


	2011		2012		2013
Domestic	$	164,996	$	180,270	$	217,468
Foreign		2,810		917		7,631

	$	167,806	$	181,187	$	225,099

Differences Between Statutory Income Tax Provision and Consolidated Provision for Income Taxes

The differences between the United States Federal statutory income tax provision (using the statutory rate of 35%) and the Company’s consolidated provision for income taxes for 2011, 2012 and 2013 are summarized as follows (in thousands):


	2011			2012			2013
Federal income tax provision based on the statutory rate	$	58,732		$	63,415		$	78,785
State and local income taxes, net of related Federal income taxes		5,418			5,179			5,880
Non-resident withholding and foreign income taxes		12,036			12,860			13,923
Foreign tax and other tax credits		(15,073	)		(14,678	)		(16,423	)
Non-deductible expenses, net		2,184			1,368			1,161
Valuation allowance		—			868			29
Unrecognized tax benefits, net of related Federal income taxes		(640	)		80			232
Other		(212	)		(297	)		(1,473	)

	$	62,445		$	68,795		$	82,114

Components of Consolidated Provision for Income Taxes

The components of the 2011, 2012 and 2013 consolidated provision for income taxes are as follows (in thousands):


	2011		2012		2013
Provision for Federal income taxes –
Current provision	$	36,165	$	45,110	$	54,115
Deferred provision		7,000		3,264		5,280

Total provision for Federal income taxes		43,165		48,374		59,395
Provision for state and local income taxes –
Current provision		6,075		6,632		8,021
Deferred provision		1,169		929		775

Total provision for state and local income taxes		7,244		7,561		8,796
Provision for non-resident withholding and foreign income taxes		12,036		12,860		13,923

	$	62,445	$	68,795	$	82,114

Significant Components of Net Deferred Income Taxes

As of December 30, 2012 and December 29, 2013, the significant components of net deferred income taxes are as follows (in thousands):


	2012			2013
Deferred Federal income tax assets –
Depreciation, amortization and asset basis differences	$	1,405		$	—
Insurance reserves		9,774			10,143
Equity compensation		11,564			12,586
Other accruals and reserves		12,732			11,606
Bad debt reserves		2,868			2,239
Valuation allowance		(770	)		(799	)
Other		6,187			4,579

Total deferred Federal income tax assets		43,760			40,354

Deferred Federal income tax liabilities –
Depreciation, amortization and asset basis differences		—			1,772
Capitalized software		11,674			13,017
Gain on debt extinguishments		22,682			22,682
Other		1,115			—

Total deferred Federal income tax liabilities		35,471			37,471

Net deferred Federal income tax asset		8,289			2,883
Net deferred state and local income tax asset		3,953			3,167

Net deferred income taxes	$	12,242		$	6,050

Classification of Net Deferred Income Taxes

As of December 30, 2012, the classification of net deferred income taxes is summarized as follows (in thousands):


	Current			Long-term			Total
Deferred tax assets	$	16,405		$	31,308		$	47,713
Deferred tax liabilities		(1,115	)		(34,356	)		(35,471	)

Net deferred income taxes	$	15,290		$	(3,048	)	$	12,242

As of December 29, 2013, the classification of net deferred income taxes is summarized as follows (in thousands):


	Current			Long-term			Total
Deferred tax assets	$	15,246		$	28,275		$	43,521
Deferred tax liabilities		(4,536	)		(32,935	)		(37,471	)

Net deferred income taxes	$	10,710		$	(4,660	)	$	6,050

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


Balance as of January 2, 2011	$	4,405
Additions for tax positions of current year		138
Additions for tax positions of prior years		119
Reductions in tax positions from prior years for:
Changes in prior year tax positions		(444	)
Lapses of applicable statute of limitations		(731	)

Balance as of January 1, 2012		3,487
Additions for tax positions of current year		239
Additions for tax positions of prior years		373
Reductions in tax positions from prior years for:
Changes in prior year tax positions		(111	)
Settlements during the period		(11	)
Lapses of applicable statute of limitations		(505	)

Balance as of December 30, 2012		3,472
Additions for tax positions of current year		337
Additions for tax positions of prior years		398
Reductions in tax positions from prior years for:
Changes in prior year tax positions		(157	)
Settlements during the period		(133	)
Lapses of applicable statute of limitations		(344	)

Balance as of December 29, 2013	$	3,573

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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