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Nature of Business and Basis of Presentation | 12 Months Ended
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Jan. 03, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Accounting Changes and Error Corrections [Text Block] | Restatement of Prior Period Financial Statements The Company has restated its previously reported consolidated financial statements for the year ended December 28, 2013 in order to correct certain previously reported amounts. As previously disclosed, the California Board of Equalization (“BOE”) is conducting a sales and use tax examination covering the California operations of Appliance Recycling Centers of America, Inc. (the “Company”) for 2011, 2012 and 2013. The Company believed it was exempt from collecting sales taxes under service agreements with utility customers that included appliance replacement programs. During the fourth quarter of 2014, the Company received communication from the BOE indicating they are not in agreement with the Company’s interpretation of the law. As a result, the Company applied for and, as of February 9, 2015, received approval to participate in the California Board of Equalization’s Managed Audit Program. The period covered under this program includes 2011, 2012, 2013 and extends through the nine-month period ended September 30, 2014. At this time, our best estimate of the amount that will be assessed by the BOE covering all periods under audit is approximately $3.9 million ($2.4 million net of income taxes) in sales tax and interest related to the appliance replacement programs that we administered on behalf of our customers on which we did not assess, collect or remit sales tax. Sales taxes accrued related to the restatement are recorded as a reduction of recycling revenues. The Company has been working with outside consultants to arrive at our assessment estimate and will continue to engage the services of these sales tax experts throughout the Managed Audit Program process. The sales tax amounts that we will likely be assessed relate to transactions in the period under examination by the BOE. Such assessment, however, will be subject to protest and appeal, and would not need to be funded until the matter has been fully resolved. Resolution could take up to three years. The following is a summary of the impact of the correction of the sales tax error for periods previously reported during the quarters in the years ended January 3, 2015 and December 28, 2013, including the years ended December 28, 2013, December 29, 2012 and December 31, 2011:
| Three Months Ended
| March 29, 2014 |  | June 28, 2014 |  | September 27, 2014
Reduction of revenues | $ | (384 | ) |  | $ | (378 | ) |  | (405 | )
Increase in interest expense | (20 | ) |  | (23 | ) |  | (25 | )
Benefit of income taxes | 161 |  |  | 160 |  |  | 172 |
Total effect of restatement items | $ | (243 | ) |  | $ | (241 | ) |  | $ | (258 | )
| Three Months Ended
| March 29, 2014 |  | June 28, 2014 |  | September 27, 2014
| As previously reported |  | Restated |  | As previously reported |  | Restated |  | As previously reported |  | Restated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail | $ | 16,601 |  |  | $ | 16,601 |  |  | $ | 17,461 |  |  | $ | 17,461 |  |  | $ | 16,712 |  |  | $ | 16,712 |
Recycling | 12,068 |  |  | 11,684 |  |  | 11,539 |  |  | 11,161 |  |  | 12,238 |  |  | 11,833 |
Byproduct | 4,823 |  |  | 4,823 |  |  | 4,211 |  |  | 4,211 |  |  | 4,682 |  |  | 4,682 |
Total revenues | 33,492 |  |  | 33,108 |  |  | 33,211 |  |  | 32,833 |  |  | 33,632 |  |  | 33,227 |
Costs of revenues | 24,047 |  |  | 24,047 |  |  | 24,707 |  |  | 24,707 |  |  | 24,937 |  |  | 24,937 |
Gross profit | 9,445 |  |  | 9,061 |  |  | 8,504 |  |  | 8,126 |  |  | 8,695 |  |  | 8,290 |
Selling, general and administrative expenses | 7,375 |  |  | 7,375 |  |  | 7,296 |  |  | 7,296 |  |  | 7,612 |  |  | 7,612 |
Operating income | 2,070 |  |  | 1,686 |  |  | 1,208 |  |  | 830 |  |  | 1,083 |  |  | 678 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net | (241 | ) |  | (261 | ) |  | (205 | ) |  | (228 | ) |  | (194 | ) |  | (219 | )
Other income (expense), net | (31 | ) |  | (31 | ) |  | 43 |  |  | 43 |  |  | (67 | ) |  | (67 | )
Income before income taxes and noncontrolling interest | 1,798 |  |  | 1,394 |  |  | 1,046 |  |  | 645 |  |  | 822 |  |  | 392 |
Provision for income taxes | 690 |  |  | 529 |  |  | 462 |  |  | 302 |  |  | 317 |  |  | 145 |
Net income | 1,108 |  |  | 865 |  |  | 584 |  |  | 343 |  |  | 505 |  |  | 247 |
Net loss (income) attributable to noncontrolling interest | (137 | ) |  | (137 | ) |  | 8 |  |  | 8 |  |  | 51 |  |  | 51 |
Net income attributable to controlling interest | $ | 971 |  |  | $ | 728 |  |  | $ | 592 |  |  | $ | 351 |  |  | $ | 556 |  |  | $ | 298 |
Income per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.17 |  |  | $ | 0.13 |  |  | $ | 0.11 |  |  | $ | 0.06 |  |  | $ | 0.10 |  |  | $ | 0.05 |
Diluted | $ | 0.17 |  |  | $ | 0.12 |  |  | $ | 0.10 |  |  | $ | 0.06 |  |  | $ | 0.09 |  |  | $ | 0.05 |
Weighted average common shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 5,577 |  |  | 5,577 |  |  | 5,581 |  |  | 5,581 |  |  | 5,749 |  |  | 5,749 |
Diluted | 5,852 |  |  | 5,852 |  |  | 5,892 |  |  | 5,892 |  |  | 5,869 |  |  | 5,869 |
| Three Months Ended
| March 30, 2013 |  | June 29, 2013 |  | September 28, 2013 |  | December 28, 2013
Reduction of revenues | $ | (280 | ) |  | $ | (319 | ) |  | (300 | ) |  | (284 | )
Increase in interest expense | (11 | ) |  | (13 | ) |  | (16 | ) |  | (18 | )
Benefit of income taxes | — |  |  | — |  |  | — |  |  | 1,070 |
Total effect of restatement items | $ | (291 | ) |  | $ | (332 | ) |  | $ | (316 | ) |  | $ | 768 |
| Three Months Ended
| March 30, 2013 |  | June 29, 2013 |  | September 28, 2013 |  | December 28, 2013
| As previously reported |  | Restated |  | As previously reported |  | Restated |  | As previously reported |  | Restated |  | As previously reported |  | Restated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail | $ | 18,059 |  |  | $ | 18,059 |  |  | $ | 17,801 |  |  | $ | 17,801 |  |  | $ | 17,018 |  |  | $ | 17,018 |  |  | $ | 15,678 |  |  | $ | 15,678 |
Recycling | 8,300 |  |  | 8,020 |  |  | 10,260 |  |  | 9,941 |  |  | 11,823 |  |  | 11,523 |  |  | 11,802 |  |  | 11,518 |
Byproduct | 4,065 |  |  | 4,065 |  |  | 4,212 |  |  | 4,212 |  |  | 4,697 |  |  | 4,697 |  |  | 5,346 |  |  | 5,346 |
Total revenues | 30,424 |  |  | 30,144 |  |  | 32,273 |  |  | 31,954 |  |  | 33,538 |  |  | 33,238 |  |  | 32,826 |  |  | 32,542 |
Costs of revenues | 22,514 |  |  | 22,514 |  |  | 23,778 |  |  | 23,778 |  |  | 24,445 |  |  | 24,445 |  |  | 24,450 |  |  | 24,450 |
Gross profit | 7,910 |  |  | 7,630 |  |  | 8,495 |  |  | 8,176 |  |  | 9,093 |  |  | 8,793 |  |  | 8,376 |  |  | 8,092 |
Selling, general and administrative expenses | 7,485 |  |  | 7,485 |  |  | 7,295 |  |  | 7,295 |  |  | 7,291 |  |  | 7,291 |  |  | 7,224 |  |  | 7,224 |
Operating income | 425 |  |  | 145 |  |  | 1,200 |  |  | 881 |  |  | 1,802 |  |  | 1,502 |  |  | 1,152 |  |  | 868 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net | (283 | ) |  | (294 | ) |  | (322 | ) |  | (335 | ) |  | (320 | ) |  | (336 | ) |  | (269 | ) |  | (287 | )
Other income (expense), net | (13 | ) |  | (13 | ) |  | (7 | ) |  | (7 | ) |  | 7 |  |  | 7 |  |  | (77 | ) |  | (77 | )
Income before income taxes and noncontrolling interest | 129 |  |  | (162 | ) |  | 871 |  |  | 539 |  |  | 1,489 |  |  | 1,173 |  |  | 806 |  |  | 504 |
Provision for (benefit from) income taxes | — |  |  | — |  |  | 145 |  |  | 145 |  |  | 227 |  |  | 227 |  |  | (710 | ) |  | (1,780 | )
Net income (loss) | 129 |  |  | (162 | ) |  | 726 |  |  | 394 |  |  | 1,262 |  |  | 946 |  |  | 1,516 |  |  | 2,284 |
Net loss (income) attributable to noncontrolling interest | 55 |  |  | 55 |  |  | 42 |  |  | 42 |  |  | (128 | ) |  | (128 | ) |  | (284 | ) |  | (284 | )
Net income (loss) attributable to controlling interest | $ | 184 |  |  | $ | (107 | ) |  | $ | 768 |  |  | $ | 436 |  |  | $ | 1,134 |  |  | $ | 818 |  |  | $ | 1,232 |  |  | $ | 2,000 |
Income (loss) per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.03 |  |  | $ | (0.02 | ) |  | $ | 0.14 |  |  | $ | 0.08 |  |  | $ | 0.20 |  |  | $ | 0.15 |  |  | $ | 0.22 |  |  | $ | 0.36 |
Diluted | $ | 0.03 |  |  | $ | (0.02 | ) |  | $ | 0.13 |  |  | $ | 0.08 |  |  | $ | 0.20 |  |  | $ | 0.14 |  |  | $ | 0.21 |  |  | $ | 0.34 |
Weighted average common shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 5,556 |  |  | 5,556 |  |  | 5,556 |  |  | 5,556 |  |  | 5,564 |  |  | 5,564 |  |  | 5,571 |  |  | 5,571 |
Diluted | 5,678 |  |  | 5,556 |  |  | 5,709 |  |  | 5,709 |  |  | 5,777 |  |  | 5,777 |  |  | 5,847 |  |  | 5,847 |
| Year Ended
| December 28, 2013
Reduction of revenues | $ | (1,183 | )
Increase in interest expense | (58 | )
Benefit of income taxes | 1,070 |
Total effect of restatement items | $ | (171 | )
| Year Ended
| December 28, 2013
| As previously reported |  | Restated
Revenues: |  |  |  |  |
Retail | $ | 68,556 |  |  | $ | 68,556 |
Recycling | 42,185 |  |  | 41,002 |
Byproduct | 18,320 |  |  | 18,320 |
Total revenues | 129,061 |  |  | 127,878 |
Costs of revenues | 95,187 |  |  | 95,187 |
Gross profit | 33,874 |  |  | 32,691 |
Selling, general and administrative expenses | 29,295 |  |  | 29,295 |
Operating income | 4,579 |  |  | 3,396 |
Other income (expense): |  |  |  |  |
Interest expense, net | (1,194 | ) |  | (1,252 | )
Other income (expense), net | (90 | ) |  | (90 | )
Income before income taxes and noncontrolling interest | 3,295 |  |  | 2,054 |
Benefit from income taxes | (338 | ) |  | (1,408 | )
Net income | 3,633 |  |  | 3,462 |
Net income attributable to noncontrolling interest | (315 | ) |  | (315 | )
Net income attributable to controlling interest | $ | 3,318 |  |  | $ | 3,147 |
Income per common share: |  |  |  |  |
Basic | $ | 0.60 |  |  | $ | 0.57 |
Diluted | $ | 0.58 |  |  | $ | 0.55 |
Weighted average common shares outstanding: |  |  |  |  |
Basic | 5,562 |  |  | 5,562 |
Diluted | 5,742 |  |  | 5,742 |
The following table sets forth the corrections to each of the individual line items affected in the consolidated balance sheet:
| December 28, 2013
| As previously reported |  | Error correction |  | Restated
Current deferred tax asset | $ | 523 |  |  | $ | 1,070 |  |  | 1,593 |
Accrued expenses | $ | 4,288 |  |  | $ | 2,683 |  |  | 6,971 |
Accumulated deficit | $ | (5,331 | ) |  | $ | (1,613 | ) |  | $ | (6,944 | )
The following table sets forth the $1,442 correction to the accumulated deficit at December 29, 2012 that resulted from the correction of the sales tax errors for fiscal 2011 and 2012 of $878 and $564, respectively:
| December 29, 2012
| As previously reported |  | Error correction |  | Restated
Accumulated deficit | $ | (8,649 | ) |  | $ | (1,442 | ) |  | $ | (10,091 | )
The Company did not present tables for adjustments within the consolidated statements of cash flows, since all of the foregoing adjustments were within the operating activities section of the consolidated statements of cash flows. These adjustments did not affect total cash flows from operating activities, financing activities or investing activities for any period presented.
Schedule of Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Table Text Block] | The following is a summary of the impact of the correction of the sales tax error for periods previously reported during the quarters in the years ended January 3, 2015 and December 28, 2013, including the years ended December 28, 2013, December 29, 2012 and December 31, 2011:
| Three Months Ended
| March 29, 2014 |  | June 28, 2014 |  | September 27, 2014
Reduction of revenues | $ | (384 | ) |  | $ | (378 | ) |  | (405 | )
Increase in interest expense | (20 | ) |  | (23 | ) |  | (25 | )
Benefit of income taxes | 161 |  |  | 160 |  |  | 172 |
Total effect of restatement items | $ | (243 | ) |  | $ | (241 | ) |  | $ | (258 | )
| Three Months Ended
| March 29, 2014 |  | June 28, 2014 |  | September 27, 2014
| As previously reported |  | Restated |  | As previously reported |  | Restated |  | As previously reported |  | Restated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail | $ | 16,601 |  |  | $ | 16,601 |  |  | $ | 17,461 |  |  | $ | 17,461 |  |  | $ | 16,712 |  |  | $ | 16,712 |
Recycling | 12,068 |  |  | 11,684 |  |  | 11,539 |  |  | 11,161 |  |  | 12,238 |  |  | 11,833 |
Byproduct | 4,823 |  |  | 4,823 |  |  | 4,211 |  |  | 4,211 |  |  | 4,682 |  |  | 4,682 |
Total revenues | 33,492 |  |  | 33,108 |  |  | 33,211 |  |  | 32,833 |  |  | 33,632 |  |  | 33,227 |
Costs of revenues | 24,047 |  |  | 24,047 |  |  | 24,707 |  |  | 24,707 |  |  | 24,937 |  |  | 24,937 |
Gross profit | 9,445 |  |  | 9,061 |  |  | 8,504 |  |  | 8,126 |  |  | 8,695 |  |  | 8,290 |
Selling, general and administrative expenses | 7,375 |  |  | 7,375 |  |  | 7,296 |  |  | 7,296 |  |  | 7,612 |  |  | 7,612 |
Operating income | 2,070 |  |  | 1,686 |  |  | 1,208 |  |  | 830 |  |  | 1,083 |  |  | 678 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net | (241 | ) |  | (261 | ) |  | (205 | ) |  | (228 | ) |  | (194 | ) |  | (219 | )
Other income (expense), net | (31 | ) |  | (31 | ) |  | 43 |  |  | 43 |  |  | (67 | ) |  | (67 | )
Income before income taxes and noncontrolling interest | 1,798 |  |  | 1,394 |  |  | 1,046 |  |  | 645 |  |  | 822 |  |  | 392 |
Provision for income taxes | 690 |  |  | 529 |  |  | 462 |  |  | 302 |  |  | 317 |  |  | 145 |
Net income | 1,108 |  |  | 865 |  |  | 584 |  |  | 343 |  |  | 505 |  |  | 247 |
Net loss (income) attributable to noncontrolling interest | (137 | ) |  | (137 | ) |  | 8 |  |  | 8 |  |  | 51 |  |  | 51 |
Net income attributable to controlling interest | $ | 971 |  |  | $ | 728 |  |  | $ | 592 |  |  | $ | 351 |  |  | $ | 556 |  |  | $ | 298 |
Income per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.17 |  |  | $ | 0.13 |  |  | $ | 0.11 |  |  | $ | 0.06 |  |  | $ | 0.10 |  |  | $ | 0.05 |
Diluted | $ | 0.17 |  |  | $ | 0.12 |  |  | $ | 0.10 |  |  | $ | 0.06 |  |  | $ | 0.09 |  |  | $ | 0.05 |
Weighted average common shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 5,577 |  |  | 5,577 |  |  | 5,581 |  |  | 5,581 |  |  | 5,749 |  |  | 5,749 |
Diluted | 5,852 |  |  | 5,852 |  |  | 5,892 |  |  | 5,892 |  |  | 5,869 |  |  | 5,869 |
| Three Months Ended
| March 30, 2013 |  | June 29, 2013 |  | September 28, 2013 |  | December 28, 2013
Reduction of revenues | $ | (280 | ) |  | $ | (319 | ) |  | (300 | ) |  | (284 | )
Increase in interest expense | (11 | ) |  | (13 | ) |  | (16 | ) |  | (18 | )
Benefit of income taxes | — |  |  | — |  |  | — |  |  | 1,070 |
Total effect of restatement items | $ | (291 | ) |  | $ | (332 | ) |  | $ | (316 | ) |  | $ | 768 |
| Three Months Ended
| March 30, 2013 |  | June 29, 2013 |  | September 28, 2013 |  | December 28, 2013
| As previously reported |  | Restated |  | As previously reported |  | Restated |  | As previously reported |  | Restated |  | As previously reported |  | Restated
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail | $ | 18,059 |  |  | $ | 18,059 |  |  | $ | 17,801 |  |  | $ | 17,801 |  |  | $ | 17,018 |  |  | $ | 17,018 |  |  | $ | 15,678 |  |  | $ | 15,678 |
Recycling | 8,300 |  |  | 8,020 |  |  | 10,260 |  |  | 9,941 |  |  | 11,823 |  |  | 11,523 |  |  | 11,802 |  |  | 11,518 |
Byproduct | 4,065 |  |  | 4,065 |  |  | 4,212 |  |  | 4,212 |  |  | 4,697 |  |  | 4,697 |  |  | 5,346 |  |  | 5,346 |
Total revenues | 30,424 |  |  | 30,144 |  |  | 32,273 |  |  | 31,954 |  |  | 33,538 |  |  | 33,238 |  |  | 32,826 |  |  | 32,542 |
Costs of revenues | 22,514 |  |  | 22,514 |  |  | 23,778 |  |  | 23,778 |  |  | 24,445 |  |  | 24,445 |  |  | 24,450 |  |  | 24,450 |
Gross profit | 7,910 |  |  | 7,630 |  |  | 8,495 |  |  | 8,176 |  |  | 9,093 |  |  | 8,793 |  |  | 8,376 |  |  | 8,092 |
Selling, general and administrative expenses | 7,485 |  |  | 7,485 |  |  | 7,295 |  |  | 7,295 |  |  | 7,291 |  |  | 7,291 |  |  | 7,224 |  |  | 7,224 |
Operating income | 425 |  |  | 145 |  |  | 1,200 |  |  | 881 |  |  | 1,802 |  |  | 1,502 |  |  | 1,152 |  |  | 868 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net | (283 | ) |  | (294 | ) |  | (322 | ) |  | (335 | ) |  | (320 | ) |  | (336 | ) |  | (269 | ) |  | (287 | )
Other income (expense), net | (13 | ) |  | (13 | ) |  | (7 | ) |  | (7 | ) |  | 7 |  |  | 7 |  |  | (77 | ) |  | (77 | )
Income before income taxes and noncontrolling interest | 129 |  |  | (162 | ) |  | 871 |  |  | 539 |  |  | 1,489 |  |  | 1,173 |  |  | 806 |  |  | 504 |
Provision for (benefit from) income taxes | — |  |  | — |  |  | 145 |  |  | 145 |  |  | 227 |  |  | 227 |  |  | (710 | ) |  | (1,780 | )
Net income (loss) | 129 |  |  | (162 | ) |  | 726 |  |  | 394 |  |  | 1,262 |  |  | 946 |  |  | 1,516 |  |  | 2,284 |
Net loss (income) attributable to noncontrolling interest | 55 |  |  | 55 |  |  | 42 |  |  | 42 |  |  | (128 | ) |  | (128 | ) |  | (284 | ) |  | (284 | )
Net income (loss) attributable to controlling interest | $ | 184 |  |  | $ | (107 | ) |  | $ | 768 |  |  | $ | 436 |  |  | $ | 1,134 |  |  | $ | 818 |  |  | $ | 1,232 |  |  | $ | 2,000 |
Income (loss) per common share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.03 |  |  | $ | (0.02 | ) |  | $ | 0.14 |  |  | $ | 0.08 |  |  | $ | 0.20 |  |  | $ | 0.15 |  |  | $ | 0.22 |  |  | $ | 0.36 |
Diluted | $ | 0.03 |  |  | $ | (0.02 | ) |  | $ | 0.13 |  |  | $ | 0.08 |  |  | $ | 0.20 |  |  | $ | 0.14 |  |  | $ | 0.21 |  |  | $ | 0.34 |
Weighted average common shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic | 5,556 |  |  | 5,556 |  |  | 5,556 |  |  | 5,556 |  |  | 5,564 |  |  | 5,564 |  |  | 5,571 |  |  | 5,571 |
Diluted | 5,678 |  |  | 5,556 |  |  | 5,709 |  |  | 5,709 |  |  | 5,777 |  |  | 5,777 |  |  | 5,847 |  |  | 5,847 |
| Year Ended
| December 28, 2013
Reduction of revenues | $ | (1,183 | )
Increase in interest expense | (58 | )
Benefit of income taxes | 1,070 |
Total effect of restatement items | $ | (171 | )
| Year Ended
| December 28, 2013
| As previously reported |  | Restated
Revenues: |  |  |  |  |
Retail | $ | 68,556 |  |  | $ | 68,556 |
Recycling | 42,185 |  |  | 41,002 |
Byproduct | 18,320 |  |  | 18,320 |
Total revenues | 129,061 |  |  | 127,878 |
Costs of revenues | 95,187 |  |  | 95,187 |
Gross profit | 33,874 |  |  | 32,691 |
Selling, general and administrative expenses | 29,295 |  |  | 29,295 |
Operating income | 4,579 |  |  | 3,396 |
Other income (expense): |  |  |  |  |
Interest expense, net | (1,194 | ) |  | (1,252 | )
Other income (expense), net | (90 | ) |  | (90 | )
Income before income taxes and noncontrolling interest | 3,295 |  |  | 2,054 |
Benefit from income taxes | (338 | ) |  | (1,408 | )
Net income | 3,633 |  |  | 3,462 |
Net income attributable to noncontrolling interest | (315 | ) |  | (315 | )
Net income attributable to controlling interest | $ | 3,318 |  |  | $ | 3,147 |
Income per common share: |  |  |  |  |
Basic | $ | 0.60 |  |  | $ | 0.57 |
Diluted | $ | 0.58 |  |  | $ | 0.55 |
Weighted average common shares outstanding: |  |  |  |  |
Basic | 5,562 |  |  | 5,562 |
Diluted | 5,742 |  |  | 5,742 |
The following table sets forth the corrections to each of the individual line items affected in the consolidated balance sheet:
| December 28, 2013
| As previously reported |  | Error correction |  | Restated
Current deferred tax asset | $ | 523 |  |  | $ | 1,070 |  |  | 1,593 |
Accrued expenses | $ | 4,288 |  |  | $ | 2,683 |  |  | 6,971 |
Accumulated deficit | $ | (5,331 | ) |  | $ | (1,613 | ) |  | $ | (6,944 | )
The following table sets forth the $1,442 correction to the accumulated deficit at December 29, 2012 that resulted from the correction of the sales tax errors for fiscal 2011 and 2012 of $878 and $564, respectively:
| December 29, 2012
| As previously reported |  | Error correction |  | Restated
Accumulated deficit | $ | (8,649 | ) |  | $ | (1,442 | ) |  | $ | (10,091 | )
Fiscal Period, Policy [Policy Text Block] | Fiscal year: We report on a 52- or 53-week fiscal year. Our 2014 fiscal year (“2014”) ended on January 3, 2015, and included 53 weeks. Our 2013 fiscal year (“2013”) ended on December 28, 2013, and included 52 weeks.
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Nature of business: Appliance Recycling Centers of America, Inc. and subsidiaries (“we,” the “Company” or “ARCA”) are in the business of providing turnkey appliance recycling and replacement services for electric utilities and other sponsors of energy efficiency programs. We also sell new major household appliances through a chain of Company-owned stores under the name ApplianceSmart®. In addition, we have a 50% interest in a joint venture operating under the name ARCA Advanced Processing, LLC (“AAP”), which recycles appliances from twelve states in the Northeast and Mid-Atlantic regions of the United States for General Electric Company (“GE”) acting through its GE Appliances business component. These appliances include units manufactured by GE as well as by other manufacturers. Principles of consolidation: The consolidated financial statements include the accounts of Appliance Recycling Centers of America, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. ApplianceSmart, Inc., a Minnesota corporation, is a wholly owned subsidiary that was formed through a corporate reorganization in July 2011 to hold our business of selling new major household appliances through a chain of Company-owned retail stores. ARCA Canada Inc., a Canadian corporation, is a wholly owned subsidiary that was formed in September 2006 to provide turnkey recycling services for electric utility energy efficiency programs. ARCA Recycling, Inc., a California corporation, is a wholly owned subsidiary that was formed in November 1991 to provide turnkey recycling services for electric utility efficiency programs. The operating results of our wholly owned subsidiaries are consolidated in our financial statements. AAP is a joint venture that was formed in October 2009 between ARCA and 4301 Operations, LLC (“4301”) to support ARCA’s agreement, as amended, with GE acting through its GE Appliances business component. Both ARCA and 4301 have a 50% interest in AAP. GE sells its recyclable appliances to ARCA, which collects, processes and recycles the appliances. The agreement requires that ARCA will only recycle, and will not sell for re-use or resale, the recyclable appliances purchased from GE. AAP established a regional processing center in Philadelphia, Pennsylvania, at which the recyclable appliances are processed. The term of the agreement is for six years from the first date of appliance collection, which was March 31, 2010. AAP commenced operations in February 2010 and has the exclusive rights to service the GE agreement as a subcontractor for ARCA. The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity due to our contribution in excess of 50% of the total equity, subordinated debt and other forms of financial support. We have a controlling financial interest in AAP through our contractual agreement with GE which is material to AAP, and we have provided substantially all of the financial support to fund the operations of AAP since its inception. Reclassification: The consolidated balance sheets included a reclassification of prior year accrued expenses to other noncurrent liabilities related to accrued rent that will reverse beyond the next fiscal year. Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to estimates and assumptions include the valuation allowances for accounts receivable, inventories and deferred tax assets, accrued expenses, and the assumptions we use to value share-based compensation. Actual results could differ from those estimates. Fair value of financial instruments: The following methods and assumptions are used to estimate the fair value of each class of financial instrument: Cash and cash equivalents, accounts receivable and accounts payable: Due to their nature and short-term maturities, the carrying amounts approximate fair value. Short- and long-term debt: The fair value of short- and long-term debt approximates carrying value and has been estimated based on discounted cash flows using interest rates being offered for similar debt having the same or similar remaining maturities and collateral requirements. No separate comparison of fair values versus carrying values is presented for the aforementioned financial instruments since their fair values are not significantly different than their balance sheet carrying amounts. In addition, the aggregate fair values of the financial instruments would not represent the underlying value of our Company. Fiscal year: We report on a 52- or 53-week fiscal year. Our 2014 fiscal year (“2014”) ended on January 3, 2015, and included 53 weeks. Our 2013 fiscal year (“2013”) ended on December 28, 2013, and included 52 weeks.

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