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Income taxes
9 Months Ended
Sep. 26, 2015
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Income taxes


During the first nine months of 2015, we utilized $2,979 of our net operating loss carry-forwards against income from the Continued Dumping and Subsidy Offset Act distributed by U.S. Customs and Border Protection in March and April of this year (see Note 7).  The income tax expense recognized during the current nine month period was primarily generated from the federal alternative minimum tax.  The alternative minimum tax limits our ability to offset income generated during the period with net operating loss carry-forwards.  During the first nine months of 2015, we reduced our valuation allowance against deferred tax assets from $21,724 to $20,579 at September 26, 2015.


We maintain a valuation allowance against deferred tax assets that currently exceed our deferred tax liabilities.  The primary assets covered by this valuation allowance are net operating loss carry-forwards. The valuation allowance was calculated in accordance with the provisions of ASC 740, Income Taxes, which requires an assessment of both positive and negative evidence when measuring the need for a valuation allowance.  Our results over the most recent three-year period were heavily affected by our business restructuring activities. Our cumulative loss in the most recent three-year period, in our view, represented sufficient negative evidence to support a valuation allowance under the provisions of ASC 740, Income Taxes. We intend to maintain a valuation allowance until sufficient positive evidence exists to support its reversal. Although realization is not assured, we have concluded that the remaining net deferred tax asset in the amount of $38 will be realized based on the reversal of existing deferred tax liabilities. The amount of the deferred tax assets actually realized, however, could vary if there are differences in the timing or amount of future reversals of existing deferred tax liabilities. Should we determine that we will not be able to realize all or part of our deferred tax assets in the future, an adjustment to the deferred tax asset will be charged to income in the period such determination is made.  


Our effective tax rates for the current three and nine month periods were a benefit of 1.8% and an expense of 1.6%, respectively, driven by the impact of the alternative minimum tax outlined above.  The effective tax rate in the prior year three and nine month periods was essentially zero since we had established a valuation allowance for our deferred tax assets in excess of our deferred tax liabilities.  The major reconciling items between our effective income tax rate and the federal statutory rate are the change in our valuation allowance and the cash surrender value on life insurance policies.