|
Income Taxes
|
6 Months Ended |
|---|---|
|
Jun. 28, 2014
|
|
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
Our overall effective tax rate, based on projected full-year taxable income, was 40.5% and 14.5% for the six months ended June 28, 2014 and June 29, 2013, respectively. The overall effective tax rate for the three months ended June 28, 2014 and June 29, 2013 was 44.2% and 16.6%, respectively. The higher tax rate in 2014 is attributable to the use of a net operating loss with a corresponding valuation allowance in the three and six months ended June 29, 2013. The effective tax rate varies from the federal statutory rate of 34% due primarily to the impact of state taxes and share-based compensation.
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 certain deferred tax assets that we do not expect to utilize as of June 28, 2014.
|