The Company recorded the following income tax expense for the periods noted:

 

		Year ended December 31, 2017				Year ended January 1, 2017				Year ended January 3, 2016
Current:
Federal/State		$	18			$	(63	)		$	28
Foreign			621				224				569
			639				161				597
Deferred:
Federal			—				—				—
Foreign			(79	)			126				76
			(79	)			126				76
Income tax expense		$	560			$	287			$	673

 

The overall income tax expense as recorded in the consolidated statements of operations varied from the tax expense calculated using U.S. federal and state income tax rates as follows for the periods noted:

 

		Year ended December 3 1, 2017				Year ended January 1 , 201 7				Year ended January 3 , 201 6
Federal income tax expense (recovery)		$	(2,550	)		$	20			$	234
State income tax expense (recovery), net of federal tax benefit			26				(62	)			29
Change in income tax rates due to tax reform			7,944				—				—
Loss (income) of foreign subsidiaries taxed at different rates			333				(161	)			113
Change in valuation allowance			(6,146	)			764				(2,205	)
Foreign Tax Credit			302				—				—
Reassessment of losses by tax authority			—				(1,675	)			—
Deemed income inclusion of foreign subsidiary			79				800				574
Expiry of operating loss carry forwards			441				439				843
Permanent and other differences			131				164				1,085
Income tax expense		$	560			$	287			$	673

 

Income (loss) before income taxes consisted of the following for the periods noted:

 

		Year ended December 31, 2017				Year ended January 1, 2017				Year ended January 3, 2016
Domestic (U.S.)		$	(6,089	)		$	(3,710	)		$	3,205
Foreign (Non U.S.)			(1,196	)			3,765				(2,536	)
		$	(7,285	)		$	55			$	669

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company

 

		December 3 1, 2017				January 1 , 201 7
Deferred income tax assets:
Net operating loss carryforwards		$	18,425			$	23,844
Capital loss carryforwards			3,563				3,563
Tax credit carryforwards			3,104				3,407
Property, plant and equipment and other assets			1,529				2,015
Reserves, allowances and accruals			1,441				1,301
			28,062				34,130
Valuation allowance			(27,757	)			(33,904	)
Net deferred income tax assets		$	305			$	226

 

At

 

At

 

Whether or the recapitalization transactions undertaken in result in an ownership change for purposes of Section

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than that some portion or all of its U.S. deferred tax assets will 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 Income Taxes, (“ASC ) states that forming a conclusion that a valuation allowance is 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.

 

On