INCOME TAXES (Tables)

12 Months Ended

Jan. 01, 2017

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is comprised of the following (in thousands):



	2016			2015			2014
Current taxes:
Federal	$	12,082		$	12,665		$	(161	)
State	5,448			5,611			2,614
Foreign	2,677			1,882			951
Total current taxes	20,207			20,158			3,404
Deferred taxes:
Federal	(20,693		)	4,963			10,198
State	(4,064		)	81			2,481
Foreign	(539		)	(2		)	86
Total deferred taxes	(25,296		)	5,042			12,765
Provision for income taxes	$	(5,089	)	$	25,200		$	16,169

Schedule of Effective Income Tax Rate Reconciliation

The items accounting for the difference between income taxes computed at the statutory federal income tax rate and income taxes reported in the Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows (in thousands, except percentages):



	2016			%		2015			%		2014			%
Income tax expense (benefit) based on statutory rate	$	(7,119	)	35.0	%	$	33,745		35.0	%	$	28,641		35.0	%
Increase (decrease) resulting from:
State income taxes, net of federal benefit	1,373			(6.8	)	4,175			4.3		3,213			3.9
Tax credits, net	(17,141		)	84.3		(14,483		)	(15.0	)	(18,564		)	(22.6	)
Non-deductible goodwill impairment charge	17,694			(87.0	)	—			—		—			—
Non-deductible/non-taxable items	630			(3.1	)	2,456			2.5		1,983			2.4
Foreign taxes	993			(4.8	)	(933		)	(1.0	)	1,037			1.3
Other, net	(1,519		)	7.4		240			0.3		(141		)	(0.2	)
Total taxes on income (loss)	$	(5,089	)	25.0	%	$	25,200		26.1	%	$	16,169		19.8	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows (in thousands):



	2016			2015
Deferred tax assets:
Allowance for doubtful accounts	$	1,970		$	2,295
Accounts payable and other accrued expenses	8,577			4,896
Net operating loss carryforwards	2,287			2,385
Tax credit carryforwards	2,835			8,315
Accrued wages and benefits	9,470			10,791
Deferred compensation	7,003			5,156
Other	1,090			1,057
Total	33,232			34,895
Valuation allowance	(2,266		)	(3,227		)
Total deferred tax asset, net of valuation allowance	30,966			31,668
Deferred tax liabilities:
Prepaid expenses, deposits and other current assets	(2,697		)	(3,141		)
Depreciation and amortization	(18,330		)	(44,383		)
Workers’ compensation	(3,169		)	(3,643		)
Total deferred tax liabilities	(24,196		)	(51,167		)
Net deferred tax (liabilities) asset, end of year	$	6,770		$	(19,499	)

Summary of Tax Credit Carryforwards

The following table summarizes our net operating losses (“NOLs”) and credit carryforwards along with their respective valuation allowance as of January 1, 2017 (in thousands):



	Carryover Tax Benefit		Valuation Allowance			Expected Benefit		Year Expiration Begins
Year-end tax attributes:
Federal WOTCs	$	1,419	$	—		$	1,419	2024
State NOLs	1,093		—			1,093		Various
Foreign NOLs	1,194		(1,194		)	—		Various
California Enterprise Zone credits (1)	1,416		(1,072		)	344		2023
Total	$	5,122	$	(2,266	)	$	2,856


(1)	The California Enterprise Zone credits fully expire in 2023.

Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward

The following table summarizes the activity related to our unrecognized tax benefits (in thousands):



	2016			2015			2014
Balance, beginning of fiscal year	$	2,195		$	2,039		$	2,035
Increases for tax positions related to the current year	348			436			389
Reductions due to lapsed statute of limitations	(301		)	(280		)	(385		)
Balance, end of fiscal year	$	2,242		$	2,195		$	2,039