Note 7 - Income Taxes |
9 Months Ended | ||
|---|---|---|---|
Oct. 01, 2017 | |||
| Notes to Financial Statements | |||
| Income Tax Disclosure [Text Block] |
During the three months period ended
October 1, 2017 and October 2, 2016, the Company recorded current income tax expenses of $173 and $97, respectively on minimum taxes and taxes on profits in certain foreign jurisdictions. The increased minimum taxes was due to increased taxable income related to the Mexican operations. For the three months period ended October 1, 2017 and October 2, 2016, deferred tax recovery of $95 and $81, respectively was recorded on temporary differences related to the Mexican operations. During the nine months period ended October 1, 2017 and October 2, 2016, the Company recorded current income tax expense of $468 and $200, respectively on minimum taxes and taxes on profits in certain foreign jurisdictions. For the nine months period ended October 1, 2017 and October 2, 2016 deferred tax recoveries of $243 and $96, respectively 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 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. |