Income Taxes

6 Months Ended

Jul. 04, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table presents the Company’s provision (benefit) for income taxes (in thousands):

	Fiscal Quarter Ended						Two Fiscal Quarters Ended
	July 4, 2017			June 28, 2016			July 4, 2017			June 28, 2016
Provision for income taxes	$	80		$	2,177		$	271		$	1,083
Effective tax rate	(4.6		)%	(18.3		)%	(1.0		)%	(7.0		)%

During the first quarter of 2016, the Company recorded a valuation allowance against Canadian deferred tax assets. During the second quarter of 2016, the Company determined that it was appropriate to record a valuation allowance against U.S. deferred tax assets. As a result, the effective tax rates for all periods presented reflect the impact of a valuation allowance against U.S. and Canadian deferred tax assets. For the remainder of fiscal 2017, the Company does not anticipate material income tax expense or benefit as a result of the valuation allowance recorded. The Company will maintain the valuation allowance against deferred tax assets until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit to the effective tax rate.