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Provision for Taxes
 12 Months Ended
Dec. 27, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 13 —     Provision for Taxes
 
Income before taxes and the provision for taxes consisted of the following:
 
In Thousands
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Income (loss) before taxes:
 
 
 
 
 
 
 
 
 
 
United States of America (USA)
 
$
5,001
 
$
19,803
 
$
11,104
 
Non USA
 
 
7,155
 
 
(3,115)
 
 
(11,642)
 
 
 
$
12,156
 
$
16,688
 
$
(538)
 
Provision for taxes:
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
Federal
 
$
3
 
$
5,060
 
$
3,671
 
State
 
 
306
 
 
560
 
 
303
 
International
 
 
566
 
 
(26)
 
 
83
 
 
 
 
875
 
 
5,594
 
 
4,057
 
Deferred
 
 
 
 
 
 
 
 
 
 
Federal
 
 
(667)
 
 
299
 
 
397
 
State
 
 
131
 
 
616
 
 
15
 
International
 
 
—
 
 
374
 
 
(77)
 
 
 
 
(536)
 
 
1,289
 
 
335
 
 
 
$
339
 
$
6,883
 
$
4,392
 
 
 
 
 
 
 
 
 
 
 
 
Continuing Operations
 
$
6,438
 
$
6,119
 
$
3,848
 
Discontinued Operations
 
 
(6,099)
 
 
764
 
 
544
 
 
 
$
339
 
$
6,883
 
$
4,392
 
 
The provision for income taxes was computed based on financial statement income. A reconciliation of the provision for income taxes to the amount computed using the statutory rate follows:
 
In Thousands
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Income tax at statutory rate
 
$
4,255
 
$
5,840
 
$
(188)
 
Increase (decrease) in income tax resulting from
 
 
 
 
 
 
 
 
 
 
State tax expense, net of federal effect
 
 
291
 
 
764
 
 
509
 
Federal true-ups
 
 
55
 
 
(18)
 
 
(113)
 
Federal tax credits
 
 
(568)
 
 
(256)
 
 
(247)
 
Effect of foreign tax rates
 
 
(1,107)
 
 
(362)
 
 
(94)
 
Valuation allowances (state and foreign)
 
 
(1,406)
 
 
1,400
 
 
39
 
Goodwill impairment (worldwide)
 
 
—
 
 
—
 
 
4,684
 
Captive insurance earnings
 
 
(398)
 
 
(390)
 
 
(379)
 
Incentive stock options
 
 
155
 
 
130
 
 
152
 
Foreign exchange gain on sale of Information Security
 
 
(898)
 
 
—
 
 
—
 
Other
 
 
(40)
 
 
(225)
 
 
29
 
Recorded provision for income taxes
 
$
339
 
$
6,883
 
$
4,392
 
 
The provision for income taxes was computed based on financial statement income. In accordance with FASB ASC 740, the Company does not have any uncertain tax positions as of and for the years ended December 27. 2014 and December 28, 2013.
 
In Thousands
 
2014
 
2013
 
Balance, beginning of year
 
$
—
 
$
—
 
Additions for current year tax positions
 
 
—
 
 
—
 
Additions for prior year tax positions
 
 
—
 
 
—
 
Settlements
 
 
—
 
 
—
 
Reductions settlements
 
 
—
 
 
—
 
Reductions for prior year tax positions
 
 
—
 
 
—
 
Balance, end of year
 
$
—
 
$
—
 
 
Interest costs and penalties related to income taxes are classified as interest expense and selling, general and administrative costs, respectively in the Company’s financial statements. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and multiple state and foreign jurisdictions. The Company is subject to future examinations by federal, state and other tax authorities for all years after 2010.
 
The components of the net deferred tax liabilities are as follows:
 
In Thousands
 
2014
 
2013
 
Assets
 
 
 
 
 
 
 
Employee benefits
 
$
120
 
$
308
 
Valuation reserves
 
 
1,412
 
 
2,427
 
Property and equipment
 
 
566
 
 
57
 
Stock based compensation
 
 
191
 
 
195
 
Federal and state credits
 
 
878
 
 
165
 
Net operating loss carry forward
 
 
1,038
 
 
8,632
 
Total assets
 
 
4,205
 
 
11,784
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Unrealized equity investment income
 
 
(3,079)
 
 
(3,157)
 
Goodwill and intangible assets
 
 
(2,660)
 
 
(2,708)
 
Prepaid insurance
 
 
(102)
 
 
(175)
 
Total liabilities
 
 
(5,841)
 
 
(6,040)
 
 
 
 
 
 
 
 
 
Valuation Allowance
 
 
 
 
 
 
 
Beginning balance
 
 
(8,949)
 
 
(7,264)
 
Decrease (increase) during period
 
 
8,514
 
 
(1,685)
 
Ending balance
 
 
(435)
 
 
(8,949)
 
 
 
$
(2,071)
 
$
(3,205)
 
 
Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows:
 
In Thousands
 
2014
 
2013
 
Deferred income tax asset - current
 
$
925
 
$
2,283
 
Deferred income tax asset (liability) – long-term
 
 
(2,996)
 
 
(5,488)
 
 
 
$
(2,071)
 
$
(3,205)
 
 
The Company has federal and state unused net operating losses of approximately $2.4 million and $3.7 million, respectively. All operating loss carry-forwards expire in various amounts through 2035.