XML 36 R22.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Note 15 - Income Taxes | 12 Months Ended
--- | ---
Jan. 02, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
15. | INCOME TAXES
The components of income tax expense (benefit) are as follows:
|  | Fiscal Years Ended |
|  | January 2, 2016 |  |  | January 3, 2015 |
Current |  |  |  |  |  |  |  |
Federal |  | $ | (570 | ) |  | $ | 309 |
State and local |  |  | 320 |  |  |  | 253 |
Foreign |  |  | 81 |  |  |  | 1,320 |
|  |  | (169 | ) |  |  | 1,882 |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | 944 |  |  |  | 1,455 |
State |  |  | 274 |  |  |  | 422 |
Foreign |  |  | 90 |  |  |  | 28 |
|  |  | 1,308 |  |  |  | 1,905 |
Total |  | $ | 1,139 |  |  | $ | 3,787 |
The components of earnings before income taxes by United States and foreign jurisdictions were as follows:
|  | Fiscal Years Ended |
|  | January 2, 2016 |  |  | January 3, 2015 |
United States |  | $ | 6,642 |  |  | $ | 5,979 |
Foreign Jurisdictions |  |  | 512 |  |  |  | 4,622 |
|  | $ | 7,154 |  |  | $ | 10,601 |
The consolidated effective income tax rate for the current year was 15.9% as compared to 35.7% for the comparable prior year period, the difference principally due to the write-off of tax basis goodwill associated with the sale of a business unit in the Company’s Information Technology segment. The income tax provisions reconciled to the tax computed at the statutory Federal rate are:
|  | January 2, 2016 |  |  | January 3, 2015 |
Tax at statutory rate |  |  | 34.0 | % |  |  | 34.0 | %
State income taxes, net of Federal income tax benefit |  |  | 5.4 |  |  |  | 4.2 |
Permanent differences |  |  | 2.2 |  |  |  | (0.2 | )
Foreign income tax rate |  |  | - |  |  |  | (2.1 | )
Tax loss on sale of business unit |  |  | (26.9 | ) |  |  | - |
Other, net |  |  | 1.2 |  |  |  | (0.2 | )
Total income tax expense |  |  | 15.9 | % |  |  | 35.7 | %
A reconciliation of the unrecognized tax benefits for the year January 2, 2016:
Unrecognized Tax Benefits |  |  |  |
Balance as of January 3, 2015 |  | $ | 628 |
Charges for current year tax positions |  |  | - |
Reserves for current year tax position |  |  | - |
Balance as of January 2, 2016 |  | $ | 628 |
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 Company recorded no expense for penalties or interest in the fiscal years ended January 2, 2016 and January 3, 2015. At January 2, 2016 and January 3, 2015, deferred tax assets and liabilities consist of the following:
|  | January 2, 2016 |  |  | January 3, 2015 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 501 |  |  | $ | 358 |
Acquisition amortization, net |  |  | 352 |  |  |  | 1,056 |
Reserves and accruals |  |  | 393 |  |  |  | 301 |
Other |  |  | 128 |  |  |  | 511 |
Total deferred tax assets |  |  | 1,374 |  |  |  | 2,226 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Prepaid expense deferral |  |  | (491 | ) |  |  | (343 | )
Bonus depreciation to be reversed |  |  | (550 | ) |  |  | (318 | )
Canada deferred tax liability, net |  |  | (250 | ) |  |  | (160 | )
Total deferred tax liabilities |  |  | (1,291 | ) |  |  | (821 | )
Total deferred tax assets, net |  | $ | 83 |  |  | $ | 1,405 |
The Company conducts its operations in multiple tax jurisdictions in the United States, Canada and Puerto Rico. 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. The Internal Revenue Service is currently examining fiscal tax years 2011 and 2012. The State of New Jersey is currently examining fiscal tax years 2009 through 2012. Except for New Jersey and other limited exceptions, the Company is no longer subject to audits by state and local tax authorities for tax years prior to 2010. The Company is no longer subject to audit in Canada for the tax years prior to tax year 2010. The Company is no longer subject to audit in Puerto Rico for the tax years prior to tax year 2005.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration