Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Income Taxes

v3.7.0.1
Note 7 - Income Taxes
6 Months Ended
Jul. 02, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
7
.
Income taxes
 
During the
three
months ended
July 2, 2017
and
July 3, 2016,
the Company recorded current income tax expenses of
$168
and
$99,
respectively on minimum taxes and taxes on profits in certain foreign jurisdictions. For the
three
months ended
July 2, 2017
and
July 3, 2016,
deferred tax recovery of
$14
and deferred tax charges of
$31,
respectively was recorded on temporary differences related to the Mexican operations. During the
six
months ended
July 2, 2017
and
July 3, 2016,
the Company recorded current income tax expenses of
$295
and
$103,
respectively on minimum taxes and taxes on profits in certain foreign jurisdictions. Current income taxes were partially offset for the
six
months ended
July 3, 2016
by tax recoveries of
$66.
For the
six
months ended
July 2, 2017
and
July 3, 2016
deferred tax recoveries of
$148
and
$15
was 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 jurisdictions continue to have a full valuation allowance recorded against the deferred tax assets.