Note 10 - Income Taxes

6 Months Ended

Jul. 02, 2017

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

six

months of

2017,

the Company increased its liability for unrecognized tax benefits by

$0.5

million. As of

July 2, 2017,

the Company had accrued approximately

$28.4

million for unrecognized tax benefits. In accordance with applicable accounting standards, the Company’s deferred tax asset as of

July 2, 2017

reflects a reduction for

$5.0

million of these unrecognized tax benefits.