Income Taxes

9 Months Ended

Sep. 29, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

5. Income Taxes

In the thirteen and thirty-nine weeks ended September 29, 2012, the Company recorded income tax provisions of $30,000 and $90,000, respectively.  In the thirteen and thirty-nine weeks ended October 1, 2011, the Company recorded income tax provisions of $30,000 and $90,000, respectively. The tax provisions for both the thirteen and thirty-nine week periods ended September 29, 2012 and October 1, 2011 are due to deferred taxes recognized on intangible assets amortized for income tax purposes but not for financial reporting purposes. The Company has reserved all of its domestic and international net deferred tax assets with a valuation allowance as of September 29, 2012 and December 31, 2011 in accordance with the provisions of FASB ASC 740, "Income Taxes," which requires an estimation of the recoverability of the recorded income tax asset balances. As of September 29, 2012, the Company has recorded $33.9 million of valuation allowances attributable to its net deferred tax assets.

The Company analyzes its uncertain tax positions pursuant to the provisions of FASB ASC 740 “Income Taxes.” There was no material activity related to the liability for uncertain tax positions during the thirteen and thirty-nine weeks ended September 29, 2012 and October 1, 2011, and the Company has determined it does not have any material uncertain tax positions for which to reserve at September 29, 2012.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2004. As of September 29, 2012, the Company has no income tax examinations in process.