Income Taxes

9 Months Ended

Oct. 03, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

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

	Fiscal Quarter Ended						Three Fiscal Quarters Ended
	October 3, 2017			September 27, 2016			October 3, 2017			September 27, 2016
(Benefit) provision for income taxes	$	(41	)	$	41		$	230		$	1,124
Effective tax rate	0.5		%	(0.4		)%	(0.6		)%	(4.5		)%

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.