Note 10 - Income Taxes

3 Months Ended

Apr. 03, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 10 – INCOMETAXES

Accounting standards require that all tax positions be analyzed using a two-step approach. The first step requires an entity to determine if a tax position is more-likely-than-not to be sustained upon examination. In the second step, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, that is more-likely-than-not to be realized upon ultimate settlement. In the first three months of 2016, the Company increased its liability for unrecognized tax benefits by $0.3 million. As of April 3, 2016, the Company had accrued approximately $28.6 million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of April 3, 2016 reflects a reduction for $14.2 million of these unrecognized tax benefits.