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(8) Income Taxes
3 Months Ended
Jul. 01, 2017
Income Tax Disclosure [Abstract]  
(8) Income Taxes

(8)        Income Taxes

A valuation allowance against deferred tax assets is required to be established or maintained when it is "more likely than not" that all or a portion of deferred tax assets will not be realized. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining deferred tax assets and as such no valuation allowance has been provided against the deferred tax asset.

 

The Company recorded a tax benefit of $152 thousand and $500 thousand for federal income taxes and a tax benefit of $31 and $130 thousand for state income taxes during the three and six months  ended July 1, 2017, respectively.

 

The Company recorded a tax benefit of $68 thousand and $31 thousand for federal income taxes and a tax benefit of $2 thousand and $9 thousand for state income taxes during the three and six months ended July 2, 2016, respectively.

 

In November 2015, the FASB issued updated accounting guidance on balance sheet classification of deferred taxes ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This update provides for simplified presentation of deferred income taxes. Deferred tax liabilities and assets are now required to be classified as noncurrent in a classified statement of financial position.   The Company chose to early adopt this guidance in Q4, 2016.  As a result 100% of the deferred tax asset is classified as non-current for all periods presented.