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 |
|