Note 15 - Income Taxes

9 Months Ended

Oct. 02, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

15.   Income Taxes

The Company recognized $1.8 million of income tax expense for the thirty-nine week period ended October 2, 2021, as compared to $2.8 million of income tax benefit for the comparable prior year period.  The consolidated effective income tax rate for the current period was 26.4% as compared to 28.2% for the comparable prior year period. The projected fiscal 2021 income tax rates as of October 2, 2021, were approximately 28.0%, 26.1% and 15.4% in the United States, Canada and Serbia, respectively. The relative income or loss generated in each jurisdiction can materially impact the overall effective income tax rate of the Company, particularly the ratio of Canadian and Serbian pretax income versus U.S. pretax income.  The comparable prior year period estimated income tax rates were 27.0%, 26.7% and 15.1% in the United States, Canada and Serbia, respectively. 

Differences between the effective tax rate and the applicable U.S. federal statutory rate may arise, primarily from the effect of state and local income taxes, share-based compensation, and potential tax credits available to the Company. The actual 2021 effective tax rate may vary from the estimate depending on the actual operating income earned in various jurisdictions, the potential availability of tax credits, and the exercise of stock options and vesting of share-based awards.