|
Income Taxes
|
6 Months Ended |
|---|---|
|
Jun. 29, 2013
|
|
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
For both the three and six months ended June 29, 2013, we recorded a $145 provision for income taxes. For the three and six months ended June 30, 2012, we recorded a provision for income taxes of $54 and a benefit of income taxes of $23, respectively. We have available net operating losses to utilize in 2013 to offset a portion of our projected full-year taxable income for the United States. We expect to realize a Canadian tax benefit in fiscal 2013 as a result of carrying back the fiscal 2013 Canadian losses. We regularly evaluate both positive and negative evidence related to retaining a valuation allowance against our deferred tax assets. The realization of deferred tax assets is dependent upon sufficient future taxable income during the periods when deductible temporary differences and carryforwards are expected to be available to reduce taxable income. We have concluded based on the weight of negative evidence that a valuation allowance should be maintained against our deferred tax assets that we do not expect to utilize as of June 29, 2013.
We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of June 29, 2013, and December 29, 2012, we did not have any material uncertain tax positions.
It is our practice to recognize interest related to income tax matters as a component of interest expense and penalties as a component of selling, general and administrative expense. As of June 29, 2013, and December 29, 2012, we had an immaterial amount of accrued interest and penalties.
We are subject to income taxes in the U.S. federal jurisdiction, foreign jurisdictions and various state jurisdictions. Tax regulations from each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, we are no longer subject to U.S. federal, foreign, state or local income tax examinations by tax authorities for the years before 2009. We are not currently under examination by any taxing jurisdiction.
We had no significant unrecognized tax benefits as of June 29, 2013, and December 29, 2012, that would reasonably be expected to affect our effective tax rate during the next twelve months.
|