XML 61 R38.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Jan. 03, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) from continuing operations before provision (benefit) for income taxes was as follows (in thousands):

 

 

 

Years Ended

 

 

 

2019

 

 

2018

 

 

2017

 

Domestic

 

$

(5,321

)

 

$

(2,629

)

 

$

(3,318

)

Foreign

 

 

18,347

 

 

 

9,268

 

 

 

1,022

 

Income (loss) before income taxes

 

$

13,026

 

 

$

6,639

 

 

$

(2,296

)

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes consisted of the following (in thousands):

 

 

 

Years Ended

 

 

 

2019

 

 

2018

 

 

2017

 

Current tax provision:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

 

 

$

 

 

$

 

State

 

 

13

 

 

 

10

 

 

 

12

 

Foreign

 

 

2,446

 

 

 

1,220

 

 

 

378

 

Total current provision

 

 

2,459

 

 

 

1,230

 

 

 

390

 

Deferred tax provision (benefit):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

(3,003

)

 

 

 

 

 

(546

)

State

 

 

(373

)

 

 

 

 

 

 

Foreign

 

 

(105

)

 

 

441

 

 

 

(1

)

Total deferred provision (benefit)

 

 

(3,481

)

 

 

441

 

 

 

(547

)

Provision (benefit) for income taxes

 

$

(1,022

)

 

$

1,671

 

 

$

(157

)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate was as follows (dollars in thousands):

 

 

 

Years Ended

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

Rate

 

 

Amount

 

 

Rate

 

 

Amount

 

 

Rate

 

 

Amount

 

Computed provision (benefit) for taxes based on

   income at statutory rate

 

 

21.0

%

 

$

2,735

 

 

 

21.0

%

 

$

1,394

 

 

 

34.0

%

 

$

(781

)

Increase (decrease) in taxes resulting from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permanent differences

 

 

17.4

 

 

 

2,266

 

 

 

0.6

 

 

 

41

 

 

 

(0.9

)

 

 

21

 

Change in the future federal tax rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(833.0

)

 

 

19,125

 

State taxes, net of federal income

   tax benefit

 

 

(2.2

)

 

 

(284

)

 

 

0.1

 

 

 

8

 

 

 

(0.3

)

 

 

8

 

State tax benefit

 

 

0.7

 

 

 

93

 

 

 

(6.7

)

 

 

(447

)

 

 

8.3

 

 

 

(190

)

Foreign tax differential

 

 

(11.6

)

 

 

(1,514

)

 

 

(11.0

)

 

 

(730

)

 

 

(1.3

)

 

 

29

 

Expiration of state net operating tax loss

   carryforwards

 

 

8.0

 

 

 

1,039

 

 

 

 

 

 

 

 

 

(36.4

)

 

 

836

 

Foreign earnings not permanently reinvested,

   net of the participation exemption

 

 

(0.1

)

 

 

(7

)

 

 

(14.0

)

 

 

(926

)

 

 

108.1

 

 

 

(2,482

)

Foreign dividend withholding

 

 

 

 

 

 

 

 

4.8

 

 

 

317

 

 

 

(0.3

)

 

 

7

 

ASC 718 share based payment adjustment

 

 

 

 

 

 

 

 

(6.5

)

 

 

(434

)

 

 

 

 

 

 

Other

 

 

1.0

 

 

 

122

 

 

 

0.5

 

 

 

30

 

 

 

(2.6

)

 

 

59

 

Valuation allowance

 

 

(42.0

)

 

 

(5,472

)

 

 

36.4

 

 

 

2,418

 

 

 

731.2

 

 

 

(16,789

)

Effective tax provision (benefit)

 

 

(7.8

)%

 

$

(1,022

)

 

 

25.2

%

 

$

1,671

 

 

 

6.8

%

 

$

(157

)

Schedule of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets (liabilities) at January 3, 2020 and December 28, 2018 were as follows (in thousands):

 

 

 

2019

 

 

2018

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for doubtful accounts and sales returns

 

$

233

 

 

$

252

 

Inventories

 

 

703

 

 

 

560

 

Accrued vacation

 

 

428

 

 

 

387

 

Accrued other expenses

 

 

1,036

 

 

 

1,232

 

Stock-based compensation

 

 

3,455

 

 

 

2,489

 

Pensions

 

 

1,159

 

 

 

884

 

Depreciation and amortization

 

 

162

 

 

 

843

 

Net operating loss carryforwards

 

 

32,251

 

 

 

34,347

 

Business, foreign, AMT and R&D credit carryforwards

 

 

3,164

 

 

 

3,256

 

Prepaid expenses

 

 

272

 

 

 

272

 

Capitalized R&D

 

 

986

 

 

 

968

 

Operating lease liability

 

 

1,309

 

 

 

 

Other

 

 

5

 

 

 

122

 

Valuation allowance

 

 

(37,603

)

 

 

(43,075

)

Total deferred tax assets

 

$

7,560

 

 

$

2,537

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Foreign tax withholding

 

$

(1,295

)

 

$

(1,282

)

Operating lease ROU assets

 

 

(1,309

)

 

 

 

Amortization of R&D

 

 

(805

)

 

 

(759

)

Net foreign earnings not permanently reinvested

 

 

(401

)

 

 

(240

)

Total deferred tax liabilities

 

 

(3,810

)

 

 

(2,281

)

Total net deferred tax assets

 

$

3,750

 

 

$

256

 

 

Summary of Income Tax Examinations

The following tax years remain subject to examination:

 

Significant jurisdictions

 

Open Years

U.S. Federal

 

2016 – 2018

California

 

2015 – 2018

Switzerland

 

2018

Japan

 

2017 – 2018