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Income Taxes
 3 Months Ended
Apr. 01, 2012
Income Taxes [Abstract]  
Income Taxes

13.  Income Taxes

The income tax benefit for the first quarter of 2012 was $2.0 million compared to an income tax provision of $1.0 million for the first quarter of 2011. Lakes’ income tax benefit in the current year period is primarily due to its ability to carry back estimated 2012 taxable loss to a prior year and receive a refund of taxes previously paid. In the prior period, the income tax provision consisted primarily of current income tax provision. The Company’s effective tax rates were (1,097)% and 42% for the first quarter of 2012 and 2011, respectively. For the three months ended April 1, 2012, the effective tax rate differs from the federal tax rate of 35% primarily due to state taxes and discrete items recognized. For the three months ended April 3, 2011, the effective tax rate differs from the federal tax rate of 35% due to state income taxes.

Deferred tax assets are evaluated by considering historical levels of income, estimates of future taxable income and the impact of tax planning strategies. Management has evaluated all available evidence and has determined that negative evidence continues to outweigh positive evidence for the realization of deferred tax assets and as a result continues to provide a full valuation allowance against its deferred tax assets.