Note 5 - Income Taxes

3 Months Ended

Mar. 25, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

5. Income Taxes

For the

three

months ended

March

25,

2017,

we used the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year in computing our tax provision. The ETR on income (loss) from continuing operations for the

three

months ended

March

25,

2017

and

March

26,

2016

was

16.7%

and

(15.1)%,

respectively. The tax provision in

2017

and

2016

differs from the U.S. federal statutory rate primarily due to the lack of a benefit on our domestic losses as a result of our valuation allowance on deferred tax assets, foreign income taxed at lower rates, changes in our deferred tax asset valuation allowance, state taxes and interest related to unrecognized tax benefits.

Other than for foreign currency exchange rate changes and the Kita Acquisition, there was no material change to our unrecognized tax benefits and related accrued interest and penalties during the

three

-month periods ended

March

25,

2017

and

March

26,

2016.