INCOME TAXES (Tables)

9 Months Ended

12 Months Ended

Oct. 01, 2016

Jan. 02, 2016

Income Tax Disclosure [Abstract]

Schedule of components of income tax (benefit) provision

A summary of our income tax (benefit) provision and related effective tax rates follows:

	Fiscal Quarter Ended						Fiscal Year to Date Ended
	October 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Income tax (benefit) provision:
Current	$	615		$	499		$	1,302		$	1,007
Deferred		(2,458	)		2,504			(59,468	)	$	5,050
Total	$	(1,843	)	$	3,003		$	(58,166	)	$	6,057
Effective tax rate		(8.9	)%		19.2	%		(129.3	)%		19.2	%

Income tax provision consists of the following components:

	Fiscal 2015		Fiscal 2014		Fiscal 2013
Federal income tax provision
Current	$	870	$	—	$	—
Deferred		6,517		7,333		5,163
Net federal income tax provision		7,387		7,333		5,163
State income tax provision
Current		591		331		574
Deferred		941		725		619
Net state income tax provision		1,532		1,056		1,193
Income tax provision	$	8,919	$	8,389	$	6,356

Schedule of reconciliations to the reported income tax provision

The following are reconciliations to the reported income tax provision:

	Fiscal 2015						Fiscal 2014						Fiscal 2013
	Amount			Percent of Pre-tax Income			Amount			Percent of Pre-tax Income			Amount			Percent of Pre-tax Income
Income tax provision (benefit) computed at statutory rate	$	16,109			35.0	%	$	(10,344	)		35.0	%	$	(17,823	)		35.0	%
Permanent book/tax difference:
Stock-based compensation		5,501			12.0	%		67			(0.2	)%		486			(1.0	)%
Other permanent differences		199			0.4	%		205			(0.7	)%		272			(0.5	)%
State and local income tax		2,814			6.1	%		(12,021	)		40.7	%		(2,908	)		5.7	%
Change in valuation allowance		(15,812	)		(34.4	)%		30,545			(103.4	)%		26,251			(51.8	)%
Other		108			0.2	%		(63	)		0.2	%		78			(0.1	)%
Income tax provision	$	8,919			19.4	%	$	8,389			(28.4	)%	$	6,356			(12.5	)%

Schedule of deferred income tax assets and liabilities

The approximate tax effect of each type of temporary difference that gave rise to the Company’s deferred income tax assets and liabilities as of January 2, 2016 follows:

	Assets			Liabilities			Total
Inventory cost capitalization and reserves	$	4,789		$	—		$	4,789
Other reserves and accruals		4,209			(940	)		3.269
Basis difference in property, plant and equipment		—			(16,794	)		(16,794	)
Amortization of intangible assets		—			(23,261	)		(23,261	)
Federal net operating loss carryforwards		76,678			—			76,678
State net operating loss carryforwards		11,153			—			11,153
Alternative minimum tax carryforward		1,502			—			1,502
State income tax credit		10,100			—			10,100
Other		307			(803	)		(496	)
Total deferred assets and liabilities		108,738			(41,798	)		66,940
Valuation allowance		(109,690	)		—			(109,690	)
Net deferred tax assets and liabilities	$	(952	)	$	(41,798	)	$	(42,750	)

The approximate tax effect of each type of temporary difference that gave rise to the Company’s deferred income tax assets and liabilities as of January 3, 2015 follows:

	Assets			Liabilities			Total
Inventory cost capitalization and reserves	$	5,380		$	—		$	5,380
Other reserves and accruals		3,920			(1,109	)		2,811
Basis difference in property, plant and equipment		—			(14,205	)		(14,205	)
Amortization of intangible assets		—			(17,620	)		(17,620	)
Federal net operating loss carryforwards		88,873			—			88,873
State net operating loss carryforwards		13,521			—			13,521
Alternative minimum tax carryforward		632			—			632
State income tax credit		10,100			—			10,100
Other		1,850			(242	)		1,608
Total deferred assets and liabilities		124,276			(33,176	)		91,100
Valuation allowance		(126,392	)		—			(126,392	)
Net deferred tax assets and liabilities	$	(2,116	)	$	(33,176	)	$	(35,292	)

Schedule of net operating loss ("NOL") caryforwards

As of January 2, 2016, the Company had net operating losses (“NOL”) carryforwards of $215,694 and $168,101 for federal and state purposes, respectively, which expire during the following years (as revised):

	Federal		State
2016 - 2020		—		10,706
2021 - 2025		—		10,675
2026 - 2030		—		20,715
2031 - 2034		215,694		126,005

Schedule of activity in the valuation allowance for deferred tax assets

Presented in the table below is the activity in the valuation allowance:

	Fiscal Quarter Ended						Fiscal Year to Date Ended
	October 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Balance at Beginning of Period	$	35,906		$	120,232		$	109,690		$	126,392
Valuation allowance released		(13,922	)		(6,060	)		(87,706	)		(12,220	)
Balance at End of Period	$	21,984		$	114,172		$	21,984		$	114,172

The following shows the activity in the valuation allowance for deferred tax assets:

	Fiscal 2015			Fiscal 2014		Fiscal 2013
Balance at beginning of period	$	126,392		$	94,952	$	68,701
Additions		—			31,440		26,251
Deductions		(16,702	)		—		—
Balance at end of period	$	109,690		$	126,392	$	94,952