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Income Taxes | 12 Months Ended
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Dec. 28, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The (benefit) provision for income taxes from continuing operations consists of the following for the fiscal years indicated:
| Fiscal Year
| 2013 |  | 2012 |  | 2011
Current |  |  |  |  |
Federal | $ | (13,124,000 | ) |  | $ | — |  |  | $ | 52,000 |
State | 12,000 |  |  | 64,000 |  |  | 88,000 |
Foreign | (34,000 | ) |  | — |  |  | (137,000 | )
Total current (benefit) provision | (13,146,000 | ) |  | 64,000 |  |  | 3,000 |
Deferred |  |  |  |  |
Federal | (3,616,000 | ) |  | (2,878,000 | ) |  | 3,977,000 |
State | 644,000 |  |  | (505,000 | ) |  | (30,000 | )
Foreign | (565,000 | ) |  | 73,000 |  |  | (898,000 | )
Change in valuation allowance | 3,750,000 |  |  | 4,345,000 |  |  | (3,052,000 | )
Total deferred provision | 213,000 |  |  | 1,035,000 |  |  | (3,000 | )
Total (benefit) provision for income taxes | $ | (12,933,000 | ) |  | $ | 1,099,000 |  |  | $ | — |
Net operating losses utilized in 2013, 2012 and 2011 to offset federal and state taxes were $0, $0 and $2,698,000, respectively. The actual income tax provision (benefit) reported from operations are different than those which would have been computed by applying the federal statutory tax rate to loss before income tax benefit. A reconciliation of income tax (benefit) provision from continuing operations as computed at the U.S. federal statutory income tax rate to the provision for income tax benefit is as follows:
| Fiscal Year
| 2013 |  | 2012 |  | 2011
Tax provision at federal statutory rates | $ | (13,322,000 | ) |  | $ | (7,002,000 | ) |  | $ | (2,006,000 | )
State tax liability | 8,000 |  |  | 42,000 |  |  | 57,000 |
Foreign deferred | (644,000 | ) |  | 734,000 |  |  | 611,000 |
Foreign withholding | 308,000 |  |  | 1,170,000 |  |  | — |
Outside basis in KTC and Kowon, net | (202,000 | ) |  | 2,422,000 |  |  | — |
Goodwill | — |  |  | 417,000 |  |  | 771,000 |
Nondeductible expenses | 864,000 |  |  | 180,000 |  |  | 415,000 |
Increase in net state operating loss carryforwards | (2,868,000 | ) |  | — |  |  | — |
Provision to tax return adjustments and state tax rate change | (33,000 | ) |  | (462,000 | ) |  | 888,000 |
Tax credits | (390,000 | ) |  | (100,000 | ) |  | 1,188,000 |
Non-deductible equity compensation | (418,000 | ) |  | 136,000 |  |  | 1,542,000 |
Other, net | 14,000 |  |  | (783,000 | ) |  | (414,000 | )
Change in valuation allowance | 3,750,000 |  |  | 4,345,000 |  |  | (3,052,000 | )
| $ | (12,933,000 | ) |  | $ | 1,099,000 |  |  | $ | — |
Pretax foreign losses from continuing operations were approximately $(4,966,000), $(6,870,000) and $(6,879,000) for fiscal years 2013, 2012 and 2011, respectively. The Company has made the decision to close Kowon and accordingly reflected a liability for unremitted earnings. The benefit for income taxes for the fiscal year ended 2013 of $12.9 million represents the net of state and foreign tax and intra period tax allocations related to the Company's discontinued operations and withholding taxes related to ceasing operations at the Korean facility. Deferred income taxes are provided to recognize the effect of temporary differences between tax and financial reporting. Deferred income tax assets and liabilities consist of the following:
| Fiscal Year
| 2013 |  | 2012
Deferred tax liability: |  |  |
Intangible asset | $ | (141,000 | ) |  | $ | (636,000 | )
Foreign withholding liability | (1,478,000 | ) |  | (1,170,000 | )
Foreign unremitted earnings | (3,276,000 | ) |  | (3,478,000 | )
Deferred tax assets: |  |  |
Federal net operating loss carryforwards | 15,322,000 |  |  | 9,493,000 |
State net operating loss carryforwards | 624,000 |  |  | 580,000 |
Foreign net operating loss carryforwards | 3,202,000 |  |  | 3,028,000 |
Equity awards | 1,666,000 |  |  | 1,111,000 |
Tax credits | 5,657,000 |  |  | 5,267,000 |
Equipment | 838,000 |  |  | 4,131,000 |
Investments | 4,594,000 |  |  | 4,760,000 |
Other | 3,365,000 |  |  | 3,582,000 |
Net deferred tax assets | 30,373,000 |  |  | 26,668,000 |
Valuation allowance | (31,886,000 | ) |  | (27,973,000 | )
| $ | (1,513,000 | ) |  | $ | (1,305,000 | )
As of December 28, 2013, the Company has available for tax purposes federal net operating loss carryforwards (NOLs) of $43.7 million expiring through 2032. The Company has recognized a full valuation allowance on its net deferred tax assets as the Company has concluded that such assets are not more likely than not to be realized. The $3.7 million increase in valuation allowance during fiscal year 2013 was primarily due to net operating losses generated of $8.6 million and the sale of III-V assets. The change in valuation allowance during fiscal year 2012 was due to net operating losses generated of $6.0 million and significant equipment disposals of $2.0 million. The Company has not historically recorded, nor does it intend to record the tax benefits from stock awards until realized. Unrecorded benefits from stock awards approximated $10.1 million at December 28, 2013. The Company has suspended operations and terminated the majority of employees at its Korean subsidiary, Kowon. The assets, primarily buildings and land, have been put up for sale. It is more likely than not that the Company's share of the net book value of its Korean investment would be repatriated to the U.S. resulting in a Korean withholding tax of $1.5 million. As a result of the Company no longer being permanently reinvested in Korea, a deferred tax liability for the outside basis in the Korean subsidiary has been booked for $3.3 million. In September 2013, the U.S. Department of the Treasury and the Internal Revenue Service released final regulations relating to guidance on applying tax rules to amounts paid to acquire, produce or improve tangible personal property as well as rules for materials and supplies. The Company is currently assessing these rules and the impacts to the financial statements, if any. The Company’s income tax returns have not been examined by the Internal Revenue Service and are subject to examination for all years since 2001. State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. International jurisdictions have statutes of limitations generally ranging from three to seven years after filing of the respective return. Years still open to examination by tax authorities in major jurisdictions include Korea (2006 onward), Japan (2006 onward), Hong Kong (2008 onward) and United Kingdom (2011 onward). The Company is not currently under examination in these jurisdictions.

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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=6881521&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 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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