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(9) Income Taxes
3 Months Ended
Mar. 30, 2019
Income Tax Disclosure [Abstract]  
(9) Income Taxes

(9)       Income Taxes

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. In December the Company established a valuation reserve as it is judged more likely than not that all or a portion of the tax credits will not be used before they expire. This decision was reached after giving greater weight to its losses over the previous three years compared with its forecast of the future.

 

The Company recorded a deferred tax benefit of $156 thousand for federal income taxes and a deferred tax benefit of $64 thousand for state income taxes towards the valuation reserve during the quarter ended March 30, 2019. The Company has determined that it is more likely than not that all or a portion of this deferred tax benefit will not be realized. As a result, the Company has recorded an increase to the valuation allowance of $220 thousand to fully-offset the deferred tax benefit.

 

The Company recorded a tax benefit of $160 thousand for federal taxes and a tax benefit of $30 thousand for state income taxes during the quarter ended March 31, 2018.