XML 26 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes
9 Months Ended
Oct. 01, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
 
In the third quarters of 2017 and 2016, the Company recorded a net income tax expense of $77,000 and benefit of $23,000, respectively. For the nine months ended October 1, 2017 and October 2, 2016, the Company recorded net income tax expense of $147,000 and $68,000, respectively. The income tax expense for the three and nine months ended October 1, 2017 and October 2, 2016 relates to income taxes from the Company's foreign operations. The income tax benefit for the third quarter of 2016 includes the net effect of the following: (i) income taxes from the Company's foreign operations which are cost-plus entities; and (ii) the release of an unrecognized tax benefit in the period.

Based on the available objective evidence, management believes it is more likely than not that the Company's US domestic net deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against the associated deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in future periods.