Note 6 - Income Taxes |
3 Months Ended | ||
|---|---|---|---|
Mar. 29, 2020 | |||
| Notes to Financial Statements | |||
| Income Tax Disclosure [Text Block] |
During the three month period ended March 29, 2020 and March 31, 2019, the Company recorded current income tax expense $275 and $279, respectively, in connection with U.S. state taxes and taxes on profits in certain foreign jurisdictions, and deferred income tax expense of $15 and recovery of $8, respectively, in connection with 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.On
March 27, 2020, the U.S. federal government enacted The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provides for certain tax relief with favorable implications for the Company. Most significantly, these provisions include a temporary relaxation of limitations on annual interest expense under Internal Revenue Code Section 163 (j), and accelerated refund of certain federal tax credits. For the three months ended March 29, 2020, the current income tax benefit of these provisions is estimated to be $56, reflected in current tax expense. |