Quarterly report pursuant to Section 13 or 15(d)

13. Income Taxes

13. Income Taxes
3 Months Ended
Apr. 01, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

Our overall effective tax rate was 38.5% and (24.5)% for the three months ended April 1, 2017 and April 2, 2016, respectively. The effective tax rate varies from the U.S. federal statutory rate due to state taxes, foreign taxes, share-based compensation, non-controlling interest, and certain non-deductible expenses. Deferred income taxes decreased by $477 as a result of the current provision for income taxes.


We regularly evaluate both positive and negative evidence related to retaining a valuation allowance against certain deferred tax assets. The realization of deferred tax assets is dependent upon sufficient future taxable income during the periods when deductible temporary differences and carryforwards are expected to be available to reduce taxable income. We have concluded based on the weight of evidence that a valuation allowance should be maintained against certain deferred tax assets that we do not expect to utilize in the near future. The Company continues to have a full valuation allowance against its Canadian operations.