Note 15 - Income Taxes

3 Months Ended

Apr. 03, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

15. Income Taxes

The Company recognized

$0.4

million of income tax expense for the

thirteen

week period ended

April 3, 2021,

as compared to

$2.2

million of income tax benefit for the comparable prior year period.  The consolidated effective income tax rate for the current period was

26.1%

as compared to

27.4%

for the comparable prior year period. The projected fiscal

2021

income tax rates as of

April 3, 2021,

were approximately

28.0%,

26.5%

and

15.1%

in the United States, Canada and Serbia, respectively. The relative income or loss generated in each jurisdiction can materially impact the overall effective income tax rate of the Company, particularly the ratio of Canadian and Serbian pretax income versus U.S. pretax income.  The comparable prior year period estimated income tax rates were

27.0%,

28.1%

and

15.5%

in the United States, Canada and Serbia, respectively. 

Differences between the effective tax rate and the applicable U.S. federal statutory rate

may

arise, primarily from the effect of state and local income taxes, share-based compensation, and potential tax credits available to the Company. The actual

2021

effective tax rate

may

vary from the estimate depending on the actual operating income earned in various jurisdictions, the potential availability of tax credits, and the exercise of stock options and vesting of share-based awards. The Company's estimate for the

2021

effective tax rate has

not

been adjusted for any potential impact related to COVID-

19.