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INCOME TAXES | 12 Months Ended
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Dec. 27, 2013
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The provision for income taxes is comprised of the following (in millions):
| 2013 |  | 2012 |  | 2011
Current taxes: |  |  |  |  |
Federal | $ | 14.2 |  |  | $ | 14.9 |  |  | $ | 16.3 |
State | 5.1 |  |  | 2.7 |  |  | 2.9 |
Foreign | 0.5 |  |  | 0.3 |  |  | 0.4 |
Total current taxes | 19.8 |  |  | 17.9 |  |  | 19.6 |
Deferred taxes: |  |  |  |  |
Federal | (2.8 | ) |  | 2.7 |  |  | (1.3 | )
State | (1.0 | ) |  | 0.4 |  |  | 0.1 |
Foreign | — |  |  | — |  |  | 0.1 |
Total deferred taxes | (3.8 | ) |  | 3.1 |  |  | (1.1 | )
Provision for income taxes | $ | 16.0 |  |  | $ | 21.0 |  |  | $ | 18.5 |
The items accounting for the difference between income taxes computed at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations & Comprehensive Income are as follows (in millions except percentages):
| 2013 |  | % |  | 2012 |  | % |  | 2011 |  | %
Income tax expense based on statutory rate | $ | 21.3 |  |  | 35.0 | % |  | $ | 19.1 |  |  | 35.0 | % |  | $ | 17.2 |  |  | 35.0 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal benefit | 2.5 |  |  | 4.2 | % |  | 1.8 |  |  | 3.3 | % |  | 1.9 |  |  | 3.9 | %
Tax credits, net | (10.8 | ) |  | (17.7 | )% |  | (1.9 | ) |  | (3.5 | )% |  | (3.5 | ) |  | (7.2 | )%
Nondeductible/nontaxable items | 2.1 |  |  | 3.5 | % |  | 2.3 |  |  | 4.2 | % |  | 2.9 |  |  | 5.8 | %
Other, net | 0.9 |  |  | 1.3 | % |  | (0.3 | ) |  | (0.6 | )% |  | — |  |  | 0.1 | %
Total taxes on income | $ | 16.0 |  |  | 26.3 | % |  | $ | 21.0 |  |  | 38.4 | % |  | $ | 18.5 |  |  | 37.6 | %
The primary difference between the statutory federal income tax rate of 35.0% and our annual effective income tax rate of 26.3%, excluding the prior year WOTC benefits, is from estimated current year WOTC, state income taxes, and certain non-deductible expenses. Our effective tax rate on earnings for the year ended December 27, 2013, was 26.3% compared to 38.4% for the same period in 2012. The decrease in the effective tax rate is due primarily to the federal Work Opportunity Tax Credit (“WOTC”). The effective tax rate for 2012 excluded benefits of WOTC because it had largely expired at the end of 2011. The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, 2013, and retroactively restored the WOTC for 2012 and extended it through 2013. This tax credit is designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates. Because a change in the law is accounted for in the period of enactment, the retroactive effect of the Act on our U.S. federal taxes for 2012 was recognized in the year ended December 27, 2013. The effective tax rate was also favorably impacted by the estimated increase to our WOTC benefits from the IRS extension of the 2012 WOTC certification request deadline to April 29, 2013, and by receipt of additional WOTC certification approvals related to years prior to 2012. The components of deferred tax assets and liabilities were as follows (in millions):
| December 27, 2013 |  | December 28, 2012
Deferred tax assets: |  |  |
Allowance for doubtful accounts | $ | 2.2 |  |  | $ | 2.0 |
Workers’ compensation claims reserve | 10.4 |  |  | 10.1 |
Accounts payable and other accrued expenses | 2.2 |  |  | 2.4 |
Net operating loss and tax credits carry-forwards | 1.1 |  |  | 0.6 |
Accrued wages and benefits | 6.8 |  |  | 5.9 |
Deferred compensation | 2.2 |  |  | 1.5 |
Other | 1.0 |  |  | 0.5 |
Total | 25.9 |  |  | 23.0 |
Valuation allowance | (0.8 | ) |  | (0.6 | )
Total deferred tax asset, net of valuation allowance | 25.1 |  |  | 22.4 |
Deferred tax liabilities: |  |  |
Prepaid expenses, deposits and other current assets | (1.7 | ) |  | (1.6 | )
Depreciation and amortization | (10.4 | ) |  | (11.9 | )
Other | (1.2 | ) |  | (0.9 | )
Total deferred tax liabilities | (13.3 | ) |  | (14.4 | )
Net deferred tax asset, end of year | 11.8 |  |  | 8.0 |
Net deferred tax asset, current | 7.6 |  |  | 5.4 |
Net deferred tax asset, non-current | $ | 4.2 |  |  | $ | 2.6 |
At December 27, 2013, Spartan Staffing Puerto Rico, LLC, a wholly-owned subsidiary of TrueBlue, Inc., had net operating loss carry-forwards of approximately $2.7 million expiring in 2015 through 2022. Additionally, Labor Ready Southwest, Inc. and its affiliates, wholly-owned subsidiaries of TrueBlue, Inc., had California enterprise zone tax credit carry-forwards of approximately $1.0 million expiring in 2023. Valuation allowances have been established against our carry-forward tax benefits based on our history. Deferred taxes related to our foreign currency translation were de minimis for 2013, 2012 and 2011. As of December 27, 2013, our liability for unrecognized tax benefits was $2.0 million, if recognized, $1.3 million would impact our effective tax rate. We do not believe the amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the year ended December 27, 2013. This liability is recorded in Other non-current liabilities on our Consolidated Balance Sheets. In general, the tax years 2010 through 2012 remain open to examination by the major taxing jurisdictions where we conduct business. The following table summarizes the activity related to our unrecognized tax benefits (in millions):
| 2013 |  | 2012 |  | 2011
Balance, beginning of fiscal year | $ | 1.9 |  |  | $ | 1.7 |  |  | $ | 1.6 |
Increases for tax positions related to the current year | 0.4 |  |  | 0.5 |  |  | 0.3 |
Reductions due to lapsed statute of limitations | (0.3 | ) |  | (0.3 | ) |  | (0.2 | )
Balance, end of fiscal year | $ | 2.0 |  |  | $ | 1.9 |  |  | $ | 1.7 |
We recognize interest and penalties related to unrecognized tax benefits within Income tax expense on the accompanying Consolidated Statements of Operations & Comprehensive Income. Accrued interest and penalties are included within Other long-term liabilities on the Consolidated Balance Sheets. Related to the unrecognized tax benefits noted above, we accrued a de minimis amount for interest and penalties during 2013 and in total, as of December 27, 2013, have recognized a liability for penalties of$0.2 million and interest of $0.7 million.

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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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