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Provision for Taxes
 12 Months Ended
Dec. 29, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 12 — Provision for Taxes
 
Income before taxes and the provision for taxes consisted of the following:
 
In Thousands
 
2018
 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
Income before taxes:
 
$
26,442
 
 
$
15,517
 
 
$
15,542
 
Provision for taxes:
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
$
4,574
 
 
$
4,191
 
 
$
4,060
 
State
 
 
486
 
 
 
212
 
 
 
363
 
 
 
 
5,060
 
 
 
4,403
 
 
 
4,423
 
Deferred
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
591
 
 
 
(2,441
)
 
 
1,453
 
State
 
 
349
 
 
 
(506
)
 
 
(1,827
)
 
 
 
940
 
 
 
(2,947
)
 
 
(374
)
 
 
$
6,000
 
 
$
1,456
 
 
$
4,049
 
 
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
 
2018
 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
Income tax at statutory rate
 
$
5,553
 
 
$
5,431
 
 
$
5,439
 
Increase (decrease) in income tax resulting from
 
 
 
 
 
 
 
 
 
 
 
 
State tax expense, net of federal effect
 
 
660
 
 
 
(191
)
 
 
194
 
Federal true-ups
 
 
(23
)
 
 
193
 
 
 
8
 
Federal tax credits
 
 
(115
)
 
 
(242
)
 
 
(189
)
Effect of foreign tax rates
 
 
(304
)
 
 
(399
)
 
 
(443
)
Valuation allowances (state and foreign)
 
 
(150
)
 
 
(148
)
 
 
19
 
Captive insurance earnings
 
 
(263
)
 
 
(128
)
 
 
311
 
Incentive stock options
 
 
(9
)
 
 
(22
)
 
 
20
 
Deferred state rate adjustments
 
 
—
 
 
 
—
 
 
 
(1,194
)
Tax Cuts & Jobs Act of 2017
 
 
588
 
 
 
(2,986
)
 
 
—
 
Other
 
 
63
 
 
 
(52
)
 
 
(116
)
Recorded provision for income taxes
 
$
6,000
 
 
$
1,456
 
 
$
4,049
 
 
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 29, 2018 and December 30, 2017. 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 2014.
 
During the year ended December 30, 2017, the Company calculated its best estimate of the impact of the Tax Cuts and Jobs Act of 2017 and as a result, recorded $3.0 million of income tax benefits. During the year ended December 29, 2018, the Company continued its work to determine the amount of accumulated foreign earnings and the corresponding foreign tax credit. Based on the work completed, the Company recorded $0.6 million in income tax expense. We do not expect any further changes or adjustments to be made for the accumulated foreign earnings and corresponding foreign tax credit.
 
The components of the net deferred tax liabilities are as follows:
 
In Thousands
 
2018
 
 
2017
 
Assets
 
 
 
 
 
 
 
 
Employee benefits
 
$
30
 
 
$
24
 
Valuation reserves
 
 
615
 
 
 
869
 
Stock based compensation
 
 
179
 
 
 
178
 
Federal and state credits
 
 
297
 
 
 
382
 
Net operating loss carry forward
 
 
1
 
 
 
1
 
Total assets
 
 
1,122
 
 
 
1,454
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Property and equipment
 
 
(532
)
 
 
(175
)
Goodwill and intangible assets
 
 
(3,812
)
 
 
(3,465
)
Prepaid insurance
 
 
(187
)
 
 
(123
)
Total liabilities
 
 
(4,531
)
 
 
(3,763
)
 
 
 
 
 
 
 
 
 
Valuation Allowance
 
 
 
 
 
 
 
 
Beginning balance
 
 
(160
)
 
 
(411
)
Decrease during period
 
 
160
 
 
 
251
 
Ending balance
 
 
—
 
 
 
(160
)
 
 
$
(3,409
)
 
$
(2,469
)
 
Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows:
 
In Thousands
 
2018
 
 
2017
 
Deferred income tax asset - current
 
$
—
 
 
$
—
 
Deferred income tax asset (liability) – long-term
 
 
(3,409
)
 
 
(2,469
)
 
 
$
(3,409
)
 
$
(2,469
)
 
The Company has utilized all state net operating losses during the year ended December 29, 2018.