Income Taxes (Tables)

12 Months Ended

Jan. 02, 2016

Schedule of income (loss) from continuing operations before income taxes

Income (loss) from continuing operations before income taxes was as follows for the years ended (in thousands):



	2015			2014			2013
Domestic	$	(17,196	)	$	(93,157	)	$	(74,741	)
Foreign	2,128			2,263			2,626
	$	(15,068	)	$	(90,894	)	$	(72,115	)

Schedule of components of income tax expense (benefit) on income (loss) from continuing operations

Income tax expense (benefit) on loss from continuing operations consisted of the following for the years ended (in thousands):



	2015		2014			2013
Current tax expense:
Federal	$	—	$	—		$	—
Foreign	592		376			702
State	1,058		1,080			888
	1,650		1,456			1,590
Deferred tax expense (benefit):
Federal	1,109		(8,771		)	1,905
Foreign	270		124			16
State	1,364		11,350			10,650
	2,743		2,703			12,571
Income tax expense	$	4,393	$	4,159		$	14,161

Schedule of effective income tax rate reconciliation

A reconciliation of the expected tax benefit based on the federal statutory tax rate to the Company’s actual income tax expense is summarized as follows for the years ended (in thousands):



	2015			2014			2013
Expected tax benefit at federal statutory income tax rate	$	(5,274	)	$	(31,814	)	$	(25,240	)
State and local income tax benefit	(3,295		)	(1,411		)	(1,706		)
Change in valuation allowance	5,914			31,734			34,049
Change in contingency reserves	(118		)	(118		)	(105		)
Non-U.S. tax rate differences	116			(293		)	(201		)
Non-deductible expenses	3,094			4,120			4,054
Change in state tax rates	802			1,379			(272		)
Expiration of stock option contracts	—			—			968
Other	3,154			562			2,614
Income tax expense	$	4,393		$	4,159		$	14,161

Schedule of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities of the Company, were as follows (in thousands):



	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	128,232		$	135,930
Compensation and benefit related accruals	50,255			50,537
Foreign tax credit carryforwards	—			7,013
Alternative minimum tax credit carryforwards	7,450			7,706
Accounts receivable	2,679			2,468
Inventory	2,816			2,501
Restructuring accruals	8,810			8,592
Accrued tax and interest	1,882			1,763
Other	4,022			8,599
Valuation allowance	(163,225		)	(164,121		)
Total deferred tax assets	42,921			60,988

Deferred tax liabilities:
Property, plant and equipment	(27,850		)	(35,287		)
Goodwill and other intangible assets	(52,438		)	(53,948		)
Other	(553		)	(6,917		)
Total deferred tax liabilities	(80,841		)	(96,152		)
Net deferred tax liability	$	(37,920	)	$	(35,164	)

The net deferred tax (liability) asset included the following (in thousands):



	2015			2014
Current deferred tax asset (included in prepaid and other current assets)	$	4,116		$	5,042
Long-term deferred tax liability (included in other liabilities)	(42,036		)	(40,206		)
Total	$	(37,920	)	$	(35,164	)

Schedule of changes of the unrecognized tax benefits

The Company’s unrecognized tax benefit activity for the years ended 2015, 2014 and 2013 was as follows (in thousands):



Unrecognized tax benefit – As of year end 2012	$	2,226
Gross decreases - tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2013	2,226
Gross decreases - tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2014	2,226
Gross decreases - tax positions in prior period	—
Gross decreases – expiration of applicable statute of limitations	—
Unrecognized tax benefit – As of year end 2015	$	2,226