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Note 11. Income Taxes
 3 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Text Block]
11.  Income Taxes

There was no income tax benefit for the first quarter of 2013 because there is no remaining potential to carry back losses to prior years and future realization of the benefit is uncertain.  The income tax benefit for the three months ended April 1, 2012 was $2.0 million and resulted from Lakes’ ability to carry back its taxable losses to a prior year and receive a refund of taxes previously paid.  The Company’s effective tax rates were 0% and (1,097)% for the three months ended March 31, 2013 and April 1, 2012, respectively. For the three months ended March 31, 2013, the effective tax rate differs from the federal tax rate of 35% primarily due to limitation of the benefit because of uncertainty of future realization.  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.

Lakes has recorded income taxes receivable of $2.2 million for the periods ended March 31, 2013 and December 30, 2012 related to the Company’s ability to carry back 2012 taxable losses to a prior year and receive a refund of taxes previously paid.

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.