15.	INCOME TAXES

Generally, the Company’s relative income or loss generated in each of its jurisdictions can materially impact the consolidated effective income tax rate of the Company, particularly the ratio of Canadian and Serbian pretax income, versus United States pretax income. The consolidated effective income tax rate for fiscal

2019

was

15.8%

as compared to

30.5%

for the comparable prior year period. The Company’s United States Federal statutory tax rate for the

fifty-two

week period ended

December 29, 2018

and the comparable prior year period, before any adjustments, was

21.0%

The income tax provisions reconciled to the tax computed at the United States Federal statutory rate for both fiscal

2019

and

2018

are as follows:

	December 28, 2019			December 29, 2018
Federal statutory rate		21.0	%		21.0	%
Tax expense on taxable (loss) income at federal statutory rate	$	1,013		$	821
State and Puerto Rico income taxes, net of Federal income tax benefit		305			91
Prior year United States R&D tax credits in current year		(668	)		(341	)
Permanent differences		77			49
Foreign income tax rates		(101	)		(173	)
Adjustments to NOL and repatriation taxes		154			730
Other		(16	)		16
Total income tax expense	$	764		$	1,193

The Company experienced the following significant adjustments for the

2019

fiscal year that impacted its net income tax expense of

$0.8

million: prior year United States R&D tax credits of

$0.7

million recognized in fiscal

2019,

and expense from changes to its United States net operating loss carryforward and repatriation taxes of

$0.2

million.

The Company experienced several adjustments for the

2018

fiscal year that impacted its net income tax expense of

$1.2

million, including

) prior year United States

179D

deductions generated an income tax benefit of

$0.3

million;

) foreign income tax differences generated an income tax benefit of

$0.2

million; and

) changes to United States and Canadian net operating loss carryforward generated expense of

$0.7

million, primarily from changes in

2018

as a result of new information upon completing the

2017

United States Federal tax return.

The components of income tax expense are as follows:

	Fiscal Years Ended
	December 28, 2019			December 29, 2018
Current
Federal	$	(688	)	$	(198	)
State and local		181			51
Foreign		166			(90	)
		(341	)		(237	)

Deferred
Federal		892			1,399
State		229			64
Foreign		(16	)		(33	)
		1,105			1,430
Total	$	764		$	1,193

The Company completed its analysis of the Tax Cut and Jobs Act (“TCJA”) in fiscal

2018

and recorded a charge of

$0.7

million due to the utilization of net operating loss carryforwards upon the filing of its

2017

federal income tax return.

The components of earnings before income taxes by United States and foreign jurisdictions were as follows:

	Fiscal Years Ended
	December 28, 2019		December 29, 2018
United States	$	3,626	$	3,671
Foreign Jurisdictions		1,196		237
	$	4,822	$	3,908

A reconciliation of the unrecognized tax benefits for the year

December 28, 2019:

Unrecognized Tax Benefits

Balance as of December 29, 2018	$	628
Charges for current year tax positions		(628	)
Reserves for current year tax position		-

Balance as of December 28, 2019	$	-

The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes and records such amounts to interest expense. The Company recorded

expense for penalties or interest in the fiscal years ended

December 28, 2019

and

December 29, 2018.

December 28, 2019

and

December 29, 2018,

deferred tax assets and liabilities consist of the following:

	December 28, 2019			December 29, 2018
Deferred tax assets:
Allowance for doubtful accounts	$	432		$	388
Federal and state net operating loss carryforward		330			1,253
Reserves and accruals		255			343
Other		185			125
Total deferred tax assets		1,202			2,109

Deferred tax liabilities:
Acquisition amortization, net		(569	)		(403	)
Prepaid expense deferral		(701	)		(600	)
Bonus depreciation to be reversed		(327	)		(381	)
Canada deferred tax liability, net		(382	)		(398	)
Total deferred tax liabilities		(1,979	)		(1,782	)
Total deferred tax (liabilities) asset, net	$	(777	)	$	327

The Company has gross net operating losses of

$0.1

million and

$5.0

million to be applied to the net income of future Federal and State tax returns, respectively. The Federal net operating loss will expire in

2037.

The Company conducts business in many states. Net operating losses in these states expire at differing periods but the majority of these expire in

2037.

The Company conducts its operations in multiple tax jurisdictions in the United States, Canada, Puerto Rico and Serbia. The Company and its subsidiaries file a consolidated United States Federal income tax return and file in various states. The Company’s federal income tax returns have been examined through

2012.

The Internal Revenue Service is currently examining fiscal tax years

2013,

2015,

2016

and

2017.

The State of New Jersey is currently examining fiscal tax years

2009

through

2012.

Except for New Jersey and other limited exceptions, the Company is

longer subject to audits by state and local tax authorities for tax years prior to

2015.

The Company is

longer subject to audit in Canada for the tax years prior to tax year

2015.

The Company is

longer subject to audit in Puerto Rico for the tax years prior to tax year

2009.