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Note 16. Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Tax Disclosure [Text Block]
16.   INCOME TAXES

The components of income tax expense from continuing operations are as follows:

   
Fiscal Years Ended
 
   
December 31,
2011
   
January 1,
2011
 
Current
           
Federal
  $ 1,058     $ 57  
State and local
    392       990  
Foreign
    340       1,120  
                 
      1,790       2,167  
Deferred
               
Federal
    603       312  
State
    175       91  
Foreign
    85       -  
                 
      863       403  
                 
Total
  $ 2,653     $ 2,570  

The income tax provisions for continuing operations reconciled to the tax computed at the statutory Federal rate was:

   
December 31,
2011
   
January 1,
2011
 
Tax at statutory rate (credit)
    34.0 %     34.0 %
State income taxes, net of Federal income tax benefit
    5.4       8.0  
Goodwill and intangible asset tax deduction
    -       (14.9 )
Permanent differences
    (1.5 )     2.0  
Foreign income tax rate
    0.2       (0.7 )
Net operating loss carryforward
    (6.8 )     -  
Liability for amended return
    6.8       -  
Other, net
    0.2       0.2  
Total income tax expense
    38.3 %     28.6 %

A reconciliation of the unrecognized tax benefits for the years ended January 1, 2011 and December 31, 2011:

Unrecognized Tax Benefits
 
       
Balance as of January 1, 2011
  $ 0  
     Additions for current year tax positions
    473  
         
Balance as of December 31, 2011
  $ 473  

Unrecognized tax benefits amounted to $473 at December 31, 2011 which related to a refund received as the result of utilization of net operating loss carryforward. The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits will not change during the next 12 months. However, changes in the occurrence, expected outcomes and timing of those events could cause the Company's current estimate to change materially in the future.

The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes.  The amount of unrecognized tax benefits that would affect the effective tax rate if recognized is $473.

At December 31, 2011 and January 1, 2011, deferred tax assets and liabilities consist of the following:

   
December 31,
2011
   
January 1,
2011
 
Deferred tax assets:
           
Allowance for doubtful accounts
  $ 582     $ 516  
Acquisition amortization, net
    2,764       3,303  
Reserves and accruals
    477       622  
Other
    -       22  
Total deferred tax assets
    3,823       4,463  
                 
Deferred tax liabilities:
               
Prepaid expense deferral
    (394 )     (333 )
Bonus depreciation to be reversed
    (78 )     -  
Canada deferred tax liability, net
    (85 )     -  
Total deferred tax liabilities
    (557 )     (333 )
Total deferred tax assets, net
  $ 3,266     $ 4,130  

The consolidated effective income tax rate for the current year was 38.3% as compared to 28.6% for the comparable prior year period.  Income tax expense from continuing operations for the fiscal year ended December 31, 2011 was reduced by $0.2 million due to a $0.6 million write-off of an investment in the Company’s Ireland subsidiary, a discreet benefit of $0.5 million resulting from a prior year amended return because of changed tax strategy with respect to a foreign tax credit, a $0.2 million reduction for an AMT credit carry forward from a prior year offset by a $0.5 million tax liability attributable to a refund received.  The comparable prior year period was reduced $1.3 due to a permanent tax difference recognized due the goodwill and intangible asset write-off associated with a closed subsidiary (the goodwill and intangible asset balance was written off for book purposes in 2008).  Before considering these adjustments, the consolidated effective income tax rate for income from continuing operations was 43.7% for the fiscal year ended December 31, 2011 as compared to 43.5% for the comparable prior year period.

The Company conducts its operations in multiple tax jurisdictions in the United States, Canada and Puerto Rico. The Company closed its Ireland office in December 2011.  The Company and its subsidiaries file a consolidated U.S. Federal income tax return and file in various states. The Company’s federal income tax returns have been examined through 2007.  With limited exceptions, the Company is no longer subject to audits by state and local tax authorities for tax years prior to 2008.