Income Taxes	9 Months Ended
Oct. 05, 2013
Income Taxes	14. INCOME TAXES The company’s effective tax rate for the forty weeks ending October 5, 2013 was 28.1%, significantly lower than the rate of 36.2% for the forty weeks ending October 6, 2012. This decrease was driven by the gain on acquisition, which was recorded net of deferred taxes as a component of income before income taxes. The gain was treated as a permanent item in the tax provision, and favorably impacts the rate by approximately 6.5%. Discrete benefits recognized in the current period also contributed to the lower rate. The other primary differences in the effective rate and the statutory rate are state income taxes and the Section 199 qualifying production activities deduction. On September 13, 2013, the IRS and Treasury released final regulations regarding the deduction and capitalization of expenditures related to tangible property. The company is in the process of evaluating the impact of these regulations and does not expect a material impact to the financial statements. Tax legislation adopted in January of 2013 had an immaterial impact on the rate. During the twelve weeks ended October 5, 2013, the company’s activity with respect to its reserve for uncertain tax positions resulted in the recognition of a $1.4 million net tax benefit. The benefit reflects the expiration of the statute of limitations on uncertain tax positions recorded through purchase accounting for previous acquisitions. At this time, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months.

Income Taxes

9 Months Ended

Oct. 05, 2013

14. INCOME TAXES

The company’s effective tax rate for the forty weeks ending October 5, 2013 was 28.1%, significantly lower than the rate of 36.2% for the forty weeks ending October 6, 2012. This decrease was driven by the gain on acquisition, which was recorded net of deferred taxes as a component of income before income taxes. The gain was treated as a permanent item in the tax provision, and favorably impacts the rate by approximately 6.5%. Discrete benefits recognized in the current period also contributed to the lower rate. The other primary differences in the effective rate and the statutory rate are state income taxes and the Section 199 qualifying production activities deduction. On September 13, 2013, the IRS and Treasury released final regulations regarding the deduction and capitalization of expenditures related to tangible property. The company is in the process of evaluating the impact of these regulations and does not expect a material impact to the financial statements. Tax legislation adopted in January of 2013 had an immaterial impact on the rate.

During the twelve weeks ended October 5, 2013, the company’s activity with respect to its reserve for uncertain tax positions resulted in the recognition of a $1.4 million net tax benefit. The benefit reflects the expiration of the statute of limitations on uncertain tax positions recorded through purchase accounting for previous acquisitions. At this time, we do not anticipate significant changes to the amount of gross unrecognized tax benefits over the next twelve months.