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INCOME TAXES
9 Months Ended
Sep. 29, 2018
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 7 - INCOME TAXES

 

The Company's 2018 and 2017 effective tax rates differ from the statutory federal tax rate due principally to state income taxes. The Company’s effective income tax rate was 24.5% and 24.4% for the three and nine months ended September 29, 2018, respectively. The Company’s effective income tax rate for the three and nine months ended September 30, 2017 was 30.3% and 34.0%, respectively. This reduction is primarily the result of the Tax Cuts and Jobs Act of 2017, which reduced the statutory Federal tax rate from 35% to 21% effective January 1, 2018, partially offset by the loss of tax benefits available in the prior period related to the American Jobs Creation Act of 2004 that expired effective December 31, 2017. The reduced effective tax rate resulting from the Tax Cuts and Jobs Act of 2017 increased earnings per share by 4¢ and 29¢ for the three and nine months ended September 29, 2018.

 

Income tax payments for the three and nine months ended September 29, 2018 totaled $7.3 million and $15.3 million, respectively. Income tax payments for the three and nine months ended September 30, 2017 totaled $1.3 million and $18.6 million, respectively.

 

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2015.

 

The Company does not believe it has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material change to its financial position.