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Deferred income tax relates to the following: 

## Deferred income tax 

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## Reflected in the balance sheet as follows: 

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## Reconciliation of deferred income tax asset (liabilities), net 

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The Company has net operating losses in its U.S. subsidiaries of $26.3 million (January 1, 2011: $18.2 million; January 3, 2010: $31.3 million) that are available for use from 2012-2028. A deferred income tax asset has been recognized for the amount that is probable to be realized. 

The Company can control the distribution of profits and has determined that undistributed profit of its subsidiaries will not be distributed in the foreseeable future. Accordingly, no deferred income tax liability has been recorded on the undistributed profit of its subsidiaries. 

The temporary difference associated with investments in subsidiaries, for which a deferred tax liability has not been recognized, total to $0.2 million (January 1, 2011: $0.2 million; January 3, 2010: $0.4 million). 

There are no income tax consequences attached to the payment of dividends in either 2011 or 2010 by the Company to its shareholders. 

