5. INCOME TAXES

The Company’s income tax expense and related effective rate were as follows (in thousands, except percentage data):

	For the 13			For the 13			For the 40			For the 39
	Weeks Ended			Weeks Ended			Weeks Ended			Weeks Ended
	October 4,			September 28,			October 4,			September 28,
	2014			2013			2014			2013
Income tax expense	$	46,931		$	45,881		$	103,286		$	108,604
Income tax rate	30.6		%	33.2		%	30.9		%	31.4		%

The lower effective tax rates in the Third Quarter and Year To Date Period, as compared to the Prior Year Quarter and Prior Year YTD Period, respectively, were primarily attributable to a change in the Company’s geographical earnings mix.

As of October 4, 2014, the total amount of unrecognized tax benefits, excluding interest and penalties, was $16.8 million, of which $10.8 million would favorably impact the effective tax rate in future periods, if recognized. During the first quarter of fiscal 2014, the U.S. Internal Revenue Service began its examination of the Company’s 2010-2012 federal income tax returns. The Company is subject to examinations in various state and foreign jurisdictions for its 2007-2013 tax years, none of which the Company believes are significant individually or in the aggregate. Tax audit outcomes and timing of tax audit settlements are subject to significant uncertainty.

The Company has classified uncertain tax positions as long-term income taxes payable, unless such amounts are expected to be paid within twelve months of the condensed consolidated balance sheet date. As of October 4, 2014, the Company had recorded $0.6 million of unrecognized tax benefits, excluding interest and penalties, for positions that could be settled within the next twelve months. Consistent with its past practice, the Company recognizes interest and/or penalties related to income tax overpayments and income tax underpayments in income tax expense and income taxes receivable/payable, respectively. The total amount of accrued income tax-related interest and penalties included in the condensed consolidated balance sheets at October 4, 2014 was $1.7 million and $0.4 million, respectively. For the Third Quarter and Year To Date Period, the Company accrued income tax-related interest expense of $0.2 million and $0.6 million, respectively.