Note 16:       Income taxes

For fiscal year 2017, we recorded an income tax benefit of $3,441. For fiscal year 2016, we recorded an income tax benefit of $49. As of December 30, 2017, we maintained a valuation allowance of $1,102 against our net operating loss carryforwards, foreign tax credits and all deferred tax assets in Canada, principally net operating losses.

The benefit of income taxes for fiscal years 2017 and 2016 consisted of the following:

A reconciliation of our benefit of income taxes with the federal statutory tax rate for fiscal years 2017 and 2016 is shown below:

Loss before benefit of income taxes and noncontrolling interest was derived from the following sources for fiscal years 2017 and 2016 as shown below:

The components of net deferred tax assets (liabilities) as of December 30, 2017 and December 31, 2016, are as follows:

The deferred tax amounts have been classified in the accompanying consolidated balance sheets as follows:

As of December 30, 2017, the Company has net operating loss carryforwards of approximately $1.3 million for federal income tax purposes, which will be available to offset future taxable income. Due to recent tax legislation, these net operating losses are eligible for indefinite carryforward, limited by certain taxable income limitations and Sec. 382 limitations related to changes in control. The Company has certain foreign tax credits available but has recorded a full valuation allowance against these tax credits until the Company has sufficient foreign source income to utilize these credits. The Company has state net operating loss carryforwards of approximately $1.0 million, but has provided a partial valuation allowance of approximately $0.7 million on certain state net operating losses due to sufficient income in those jurisdictions.

The Company annually conducts an analysis of its uncertain tax positions and has concluded that it has no uncertain tax positions as of December 30, 2017. The Company’s policy is to record uncertain tax positions as a component of income tax expense. The Company is not under examination by any jurisdiction as of December 30, 2017.

Due to recent tax legislation that occurred on December 22, 2017 the federal corporate income tax rate was reduced to a flat 21%, which provides a significant income tax benefit to our Company in future reporting periods. The Company recognized a tax benefit of approximately $3.1 million related to adjusting our deferred tax balances to reflect the new corporate tax rate.