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Note 12 - Income Taxes | 9 Months Ended
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Sep. 30, 2015
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 12. Income Taxes The Company’s effective tax rate was (109.6)% and 0 .0% for the nine months ended September 30, 2015 and September 28, 2014, respectively. For the nine months ended September 30, 2015, the effective tax rate differed from the federal tax rate of 35% due to a $12.7 million release of existing valuation allowance on deferred tax assets resulting from deferred tax liabilities assumed in the Merger, and the limitation of the income tax benefit due to the uncertainty of its future realization. For the nine months ended September 28, 2014, the effective tax rate differed from the federal tax rate of 35% due primarily to the limitation of the income tax benefit due to the uncertainty of its future realization. Income tax benefit was $12.7 million for the nine months ended September 30, 2015, which was attributed primarily to the income tax benefit recorded from the reversal of existing valuation allowance on deferred tax assets as a result of the net deferred tax liabilities assumed in connection with the Merger. There was no income tax benefit for the nine months ended September 28, 2014 because there was no remaining potential to carry back losses to prior years and future realization of the benefit was uncertain. In connection with the Merger, on July 31, 2015, the Company entered into a NOL Preservation Agreement with Lyle A. Berman (a director and shareholder of the Company), certain other shareholders of the Company affiliated with Mr. Berman and another director of the Company and the Sartini Trust. The NOL Preservation Agreement is intended to help minimize the risk of an “ownership change,” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended, that would limit the Company’s ability to utilize its federal net operating loss carryforwards to offset future taxable income. The Company recorded income taxes receivable of $2.3 million and $2.2 million as of September 30, 2015 and December 28, 2014, respectively, primarily 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 as of September 30, 2015. The Company is currently under IRS audit for the 2009 through 2013 tax years and the IRS has proposed certain adjustments to the tax filings for those years. However, the Company believes it is more likely than not that it will prevail in challenging the proposed adjustments and maintains that the positions taken were proper and supported by applicable laws and regulations. The Company does not believe, when resolved, that this dispute will have a material effect on its consolidated financial statements. However, an unexpected adverse resolution could have a material effect on the consolidated financial statements in a particular quarter or fiscal year. During the second quarter of 2015, the Company was notified by the State of California that their audit of the Company for the 2010 tax year had been completed and resulted in no adjustments.

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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 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 2: 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 Reference 3: 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 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 + Details
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