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http://www.sec.gov/Archives/edgar/data/949373/000104746904009609/a2132006z10-k.htm[9/11/2014 10:13:55 AM]
— — —
Total income tax benefit (expense) (812) (366) (167)
The actual income tax (provision) benefit at December 30, 2003, December 31, 2002 and January 1, 2002 is reconciled to the amounts
computed by applying the statutory federal rate to income before taxes as follows:
December 30, 2003
December 31, 2002
January 1, 2002
(amounts in thousands)
Expected tax at 35% 23,413 14,037 6,487
State net of federal benefit 1,624 742 612
Loss on extinguishment of debt (8,052) — —
Other, net (497) 796 5,776
Adjustments for prior year returns (4,310) — —
Change in valuation allowance (12,990) (15,941) (13,042)
Total benefit (provision) for taxes (812) (366) (167)
F-36
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 30, 2003,
December 31, 2002 and January 1, 2002 are as follows:
December 30, 2003
December 31, 2002
(amount in thousands)
Deferred tax assets
Operating loss carryforwards 55,853 35,358
Accrued expenses 4,771 7,223
Allowances for doubtful accounts 1,324 1,829
Property, plant and equipment — 1,969
Valuation allowance (59,369) (46,379)
Total deferred tax asset 2,579 —
Deferred tax liabilities
Property, plant and equipment (2,579) —
Total deferred tax liability (2,579) —
Net deferred tax asset (liability) — —
For income tax purposes, at December 30, 2003, we had net operating loss carryforwards of approximately $139.6 million, expiring at various
dates through 2023. The utilization of approximately $116.5 million of the aforementioned net operating loss carryforwards is subject to an annual
limitation under the provisions of Section 382 of the Internal Revenue Code.
We believe it is more likely than not that our net deferred tax asset will not be realized. Accordingly, a valuation allowance has been recorded
against the deferred tax asset at December 30, 2003 and December 31, 2002. Should we conclude that the deferred tax asset is, at least in part,
realizable, the valuation allowance will be reversed to the extent of such expected realizability.
11. Other Long-Term Liabilities