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Note 14 - Income Taxes
 6 Months Ended
Jun. 29, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

14.   Income Taxes

 

The Company recognized $2.9 million of income tax expense for the twenty-six weeks ended June 29, 2024 as compared to $2.8 million for the comparable prior-year period.  The consolidated effective income tax rate for the current period was 27.6% as compared to 26.4% for the comparable prior-year period. The effective income tax rates for the twenty-six weeks ended June 29, 2024, were approximately 28.3%, 26.8% and 15.4% in the United States, Canada and Europe, respectively. The relative income or loss generated in each jurisdiction can materially impact the overall effective income tax rate of the Company, particularly the ratio of Canadian and European pretax income versus U.S. pretax income.  The comparable prior-year period estimated income tax rates were 26.8%, 25.9% and 11.7% in the United States, Canada and Europe, respectively.

 

Differences between the effective tax rate and the applicable U.S. federal statutory rate may arise, primarily from the effect of state and local income taxes, share-based compensation, and potential tax credits available to the Company. The actual 2024 effective tax rate may vary from the estimate depending on the actual operating income earned in various jurisdictions, the potential availability of tax credits, and the exercise of stock options and vesting of share-based awards.