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Note 15 - Income Taxes
 12 Months Ended
Dec. 29, 2012
Income Tax Disclosure [Text Block]
15.   INCOME TAXES

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

   
Fiscal Years Ended
 
   
December 29,
2012
   
December 31,
2011
 
Current
           
Federal
  $ 1,028     $ 1,058  
State and local
    420       392  
Foreign
    (129 )     340  
                 
      1,319       1,790  
Deferred
               
Federal
    617       603  
State
    179       175  
Foreign
    (12 )     85  
                 
      784       863  
                 
Total
  $ 2,103     $ 2,653  

The components of earnings before income taxes by United States and foreign jurisdictions were as follows:

   
Fiscal Years Ended
 
   
December 29,
2012
   
December 31,
2011
 
United States
  $ 5,790     $ 5,725  
Foreign Jurisdictions
    (460 )     1,206  
                 
    $ 5,330     $ 6,931  

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

   
December 29,
2012
   
December 31,
2011
 
Tax at statutory rate (credit)
    34.0 %     34.0 %
State income taxes, net of Federal income tax benefit
    7.4       5.4  
Permanent differences
    (2.4 )     (1.5 )
Foreign income tax rate
    0.30       0.2  
Net operating loss carryforward
    -       (6.8 )
Liability for amended return
    -       6.8  
Other, net
    0.2       0.2  
Total income tax expense
    39.5 %     38.3 %

A reconciliation of the unrecognized tax benefits for the year December 29, 2012:

Unrecognized Tax Benefits
 
       
Balance as of December 31, 2011
  $ 473  
Additions for current year tax positions
    -  
         
Balance as of December 29, 2012
  $ 473  

Unrecognized tax benefits amounted to $473 at December 29, 2012 which related to a refund received during fiscal 2011 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 and records such amounts to interest expense.  The amount of unrecognized tax benefits that would affect the effective tax rate if recognized is $473.  The Company recorded no expense for penalties or interest in the fiscal years ended December 29, 2012 and December 31, 2011.

At December 29, 2012 and December 31, 2011, deferred tax assets and liabilities consist of the following:

   
December 29,
2012
   
December 31,
2011
 
Deferred tax assets:
           
Allowance for doubtful accounts
  $ 483     $ 582  
Acquisition amortization, net
    2,214       2,764  
Reserves and accruals
    432       477  
Other
    179       -  
Total deferred tax assets
    3,308       3,823  
                 
Deferred tax liabilities:
               
Prepaid expense deferral
    (436 )     (394 )
Bonus depreciation to be reversed
    (129 )     (78 )
Canada deferred tax liability, net
    (73 )     (85 )
Total deferred tax liabilities
    (638 )     (557 )
Total deferred tax assets, net
  $ 2,670     $ 3,266  

The consolidated effective income tax rate for the current year was 39.5% as compared to 38.3% for the comparable prior year period.  Income tax expense 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 former Ireland subsidiary.

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 2010.  With limited exceptions, the Company is no longer subject to audits by state and local tax authorities for tax years prior to 2009.