Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Income Taxes

v3.7.0.1
Note 7 - Income Taxes
3 Months Ended
Apr. 02, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
7
.
Income taxes
 
 
During the
three
months ended
April
2,
2017,
the Company recorded current income tax expenses of
$127
on profits in certain foreign jurisdictions. During the
three
months ended
April
3,
2016,
the Company recorded a current income tax expense of
$70
primarily related to minimum taxes and taxes on profits in certain jurisdictions partially offset by recoveries of income taxes in the U.S. of
$66.
For the
three
months ended
April
2,
2017
and
April
3,
2016
deferred income tax recoveries of
$134
and
$46,
respectively were recorded on temporary differences related to the Mexican operations.
  
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of its U.S. deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management considers the scheduled reversal of deferred tax liabilities, change of control limitations, projected future taxable income and tax planning strategies in making this assessment. Guidance under ASC
740,
Income Taxes, (“ASC
740”)
states that forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence, such as cumulative losses in recent years in the jurisdictions to which the deferred tax assets relate. The U.S., Canadian and Asian jurisdiction continue to have a full valuation allowance recorded against the deferred tax assets.