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(7) Income Taxes
3 Months Ended
Apr. 01, 2017
Income Tax Disclosure [Abstract]  
(7) Income Taxes

(7)        Income Taxes

In 2016, the Company adopted ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. As a result, 100% of the deferred tax asset is classified as non-current for all periods presented.

 

A valuation allowance against deferred tax assets is required to be established or maintained when it is "more likely than not" that all or a portion of deferred tax assets will not be realized. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining deferred tax assets and as such no valuation allowance has been provided against the deferred tax asset.

 

The Company recorded a tax benefit of $348 thousand for federal income taxes and a tax benefit of $99 thousand for state income taxes during the quarter ended April 1, 2017. The Company recorded a tax expense of $37 thousand for federal taxes and a tax benefit of $7 thousand for state income taxes during the quarter ended April 2, 2016.