Note 5 - Income Taxes

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

5. Income Taxes

For the

three

and

nine

months ended

September 30, 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 from continuing operations for the

three

months ended

September 30, 2017

and

September 24, 2016

, was

17.3%

and

86.9%,

respectively, and

14.0%

and

65.8%

for the

nine

months ended

September 30, 2017

and

September 24, 2016

, respectively.

The tax provision on income from continuing operations in

2017

and

2016

differs from the U.S. federal statutory rate primarily due to the lack of a provision (benefit) on our domestic income (losses) as a result of our valuation allowance on deferred tax assets, foreign income taxed at different 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

- and

nine

-month periods ended

September 30, 2017

and

September 24, 2016.