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Income Taxes | 12 Months Ended
--- | ---
Dec. 28, 2013
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES U.S. and foreign income from operations before income taxes are as follows (in thousands):
| December 28, 2013 |  | December 29, 2012 |  | December 31, 2011
United States | $ | 174,470 |  |  | $ | 206,785 |  |  | $ | 272,294 |
Foreign | (10,792 | ) |  | — |  |  | — |
Income from operations before income taxes | $ | 163,678 |  |  | $ | 206,785 |  |  | $ | 272,294 |
Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands):
| December 28, 2013 |  | December 29, 2012 |  | December 31, 2011
Current: |  |  |  |  |
Federal | $ | 8,109 |  |  | $ | 54,982 |  |  | $ | 58,903 |
State | 7,213 |  |  | 10,368 |  |  | 13,461 |
Foreign | 482 |  |  | 58 |  |  | 467 |
Total current | 15,804 |  |  | 65,408 |  |  | 72,831 |
Deferred: |  |  |  |  |  |  |
Federal | 40,396 |  |  | 10,015 |  |  | 26,233 |
State | 505 |  |  | 592 |  |  | 3,812 |
Foreign | (1,994 | ) |  | — |  |  | — |
Total deferred | 38,907 |  |  | 10,607 |  |  | 30,045 |
| $ | 54,711 |  |  | $ | 76,015 |  |  | $ | 102,876 |
Income tax expense for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, differed from the amount computed by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes as a result of the following (in thousands):
| December 28, 2013 |  | December 29, 2012 |  | December 31, 2011
Computed "expected" tax expense | $ | 57,287 |  |  | $ | 72,375 |  |  | $ | 95,303 |
State income taxes, net of federal benefit | 5,017 |  |  | 7,124 |  |  | 11,226 |
Section 199 qualified domestic production deduction | (619 | ) |  | (4,830 | ) |  | (5,306 | )
Change in valuation allowance | 507 |  |  | 254 |  |  | 1 |
Biofuel tax incentives | (9,342 | ) |  | — |  |  | — |
Other, net | 1,861 |  |  | 1,092 |  |  | 1,652 |
| $ | 54,711 |  |  | $ | 76,015 |  |  | $ | 102,876 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 28, 2013 and December 29, 2012 are presented below (in thousands):
| December 28, 2013 |  | December 29, 2012
Deferred tax assets: |  |  |
Loss contingency reserves | $ | 10,756 |  |  | $ | 10,399 |
Employee benefits | 9,749 |  |  | 8,700 |
Pension liability | 4,183 |  |  | 12,132 |
Intangible assets amortization, including taxable goodwill | 7,040 |  |  | 1,981 |
Net operating losses | 4,732 |  |  | 1,925 |
Investment in DGD Joint Venture | — |  |  | 1,134 |
Other | 9,306 |  |  | 7,733 |
Total gross deferred tax assets | 45,766 |  |  | 44,004 |
Less valuation allowance | (871 | ) |  | (300 | )
Net deferred tax assets | 44,895 |  |  | 43,704 |
Deferred tax liabilities: |  |  |
Intangible assets amortization, including taxable goodwill | (63,779 | ) |  | (22,083 | )
Property, plant and equipment depreciation | (67,535 | ) |  | (53,772 | )
Investment in DGD Joint Venture | (31,842 | ) |  | — |
Other | (3,209 | ) |  | (1,855 | )
Total gross deferred tax liabilities | (166,365 | ) |  | (77,710 | )
Net deferred tax liability | $ | (121,470 | ) |  | $ | (34,006 | )
Amounts reported on Consolidated Balance Sheets: |  |  |
Current deferred tax asset | $ | 17,289 |  |  | $ | 12,609 |
Non-current deferred tax liability | (138,759 | ) |  | (46,615 | )
Net deferred tax liability | $ | (121,470 | ) |  | $ | (34,006 | )
At December 28, 2013 and December 29, 2012, the Company had net deferred tax liabilities of approximately $121.5 million and $34.0 million, respectively. The increase in the deferred tax liability is principally due to differences between the book and tax basis in the DGD Joint Venture related primarily to accelerated tax depreciation and deferred tax liabilities resulting from the carryover basis in the Terra Transaction, which was a stock acquisition. At December 28, 2013, the Company had net operating loss carryforwards for federal income tax purposes of approximately $6.6 million, which begin to expire in 2019. The availability of the net operating loss carryforwards to reduce future taxable income is subject to certain limitations. As a result of the change in ownership which occurred pursuant to the May 2002 recapitalization, utilization of approximately $4.9 million of the federal net operating loss carryforwards is limited to approximately $0.7 million per year for the remaining life of the net operating losses. The Company had approximately $7.9 million of net operating loss carryforwards for state income tax purposes, which begin to expire in 2014. Also at December 28, 2013, the Company had U.S. foreign tax credit carryforwards of approximately $0.8 million, state tax credit carryforwards of approximately $0.5 million and a net operating loss carryforward in Canada of about $8.0 million, which expire through 2033. As of December 28, 2013, the Company had a valuation allowance of $0.9 million due to uncertainties in respect to its ability to utilize its U.S. foreign tax credit carryforwards and U.S. state net operating loss carryforwards before they expire. At December 28, 2013, the Company had unrecognized tax benefits of approximately $0.7 million. During the year, the Company's unrecognized tax benefits increased by $0.7 million primarily as a result of tax positions taken in the current year. All of the unrecognized tax benefit would favorably impact the Company's effective tax rate if recognized. The Company does not reasonably expect any material change to the Company's unrecognized tax positions in the next twelve months. The Company recognizes accrued interest and penalties, as appropriate, related to unrecognized tax benefits as a component of income tax expense. In fiscal 2013, the Company's major taxing jurisdictions are U.S. (federal and state) and Canada. During the year the Company concluded an Internal Revenue Service examination for the 2009 and 2010 tax years and paid approximately $0.7 million of taxes, which was accrued prior to the first quarter of 2013. The statute of limitations for the Company's federal return is open for the 2011, 2012 and 2013 tax years. The Company is also currently being examined by several state tax agencies. Although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the state examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company's state returns is open for varying periods and jurisdictions, but is generally closed through the 2008 tax year. Prior to fiscal 2013, the Company did not have significant operations outside of the U.S. During fiscal 2013, the Company began operations in Canada through the acquisiton of Rothsay. No deferred income taxes have been provided on the unremitted earnings attributable to foreign operations because as of the end of fiscal 2013 there are no positive unremitted earnings.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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