Provision for Taxes

12 Months Ended

Dec. 26, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 13 — Provision for Taxes

Income before taxes and the provision for taxes consisted of the following:

In Thousands	2015		2014		2013
Income (loss) before taxes:
United States of America (USA)	$	15,674	$	5,001	$	19,803
Non USA		—		7,155		(3,115)
	$	15,674	$	12,156	$	16,688
Provision for taxes:
Current
Federal	$	1,670	$	3	$	5,060
State		237		306		560
International		—		566		(26)
		1,907		875		5,594
Deferred
Federal		1,909		(667)		299
State		252		131		616
International		—		—		374
		2,161		(536)		1,289
	$	4,068	$	339	$	6,883
Continuing Operations	$	4,068	$	6,438	$	6,119
Discontinued Operations		—		(6,099)		764
	$	4,068	$	339	$	6,883

The provision for income taxes was computed based on financial statement income. A reconciliation of the provision for income taxes to the amount computed using the statutory rate follows:

In Thousands	2015		2014		2013
Income tax at statutory rate	$	5,486	$	4,255	$	5,840
Increase (decrease) in income tax resulting from
State tax expense, net of federal effect		318		291		764
Federal true-ups		(38)		55		(18)
Federal tax credits		(802)		(568)		(256)
Effect of foreign tax rates		(474)		(1,107)		(362)
Valuation allowances (state and foreign)		—		(1,406)		1,400
Captive insurance earnings		(361)		(398)		(390)
Incentive stock options		57		155		130
Foreign exchange gain on sale of Information Security		—		(898)		—
Other		(118)		(40)		(225)
Recorded provision for income taxes	$	4,068	$	339	$	6,883

The provision for income taxes was computed based on financial statement income. In accordance with FASB ASC 740, the Company does not have any uncertain tax positions as of and for the years ended December 26, 2015 and December 27, 2014.

Interest costs and penalties related to income taxes are classified as interest expense and selling, general and administrative costs, respectively in the Company’s financial statements. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and multiple state and foreign jurisdictions. The Company is subject to future examinations by federal, state and other tax authorities for all years after 2011.

The components of the net deferred tax liabilities are as follows:

In Thousands	2015		2014
Assets
Employee benefits	$	100	$	120
Valuation reserves		1,897		1,412
Property and equipment		259		566
Stock based compensation		268		191
Federal and state credits		259		878
Net operating loss carry forward		29		1,038
Total assets		2,812		4,205
Liabilities
Unrealized equity investment income		(3,192)		(3,079)
Goodwill and intangible assets		(4,720)		(2,660)
Prepaid insurance		(122)		(102)
Total liabilities		(8,034)		(5,841)
Valuation Allowance
Beginning balance		(435)		(8,949)
Decrease (increase) during period		—		8,514
Ending balance		(435)		(435)
	$	(5,657)	$	(2,071)

Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows:

In Thousands	2015		2014
Deferred income tax asset - current	$	1,543	$	925
Deferred income tax asset (liability) – long-term		(7,200)		(2,996)
	$	(5,657)	$	(2,071)

The Company has state unused net operating losses of approximately $517 thousand. All operating loss carry-forwards expire in various amounts through 2029.