For fiscal years ended and pre-tax income (loss) was attributed to the following jurisdictions (in thousands):

 

 

Set forth below is the (benefit) provision for income taxes for continuing operations for the years ended in thousands):

 

 

The reconciliation of the provision (benefit) for income taxes computed at federal statutory rates to the provision for income taxes for the years ended was as follows (in thousands):

 

 

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred taxes as of and were as follows (in thousands):

 

 

Realization of the above deferred tax assets is dependent on generating sufficient taxable income in future periods and, in the case of the net operating losses, we must generate sufficient income primarily in France and Hong Kong. For the California Enterprise Zone Credits, we must continue to generate taxable income in the California Enterprise Zone. The valuation allowances of and at and respectively, primarily relate to the Company’s foreign operations, and such valuation allowances have been established due to the uncertainty of realizing our foreign tax benefits.

 

The Company files, or will file, income tax returns in the U.S. federal jurisdiction, various states and overseas in France, Hong Kong and China and has open tax periods for federal taxes for the years ended through and for certain state tax jurisdictions for the years ended through

 

As of and the Company had and respectively, of California Enterprise Zone Credits. These credits can only be utilized to offset taxable income generated in the California Enterprise Zone. Carryovers of existing California Enterprise Zone Credits (earned before expire in tax year The Company has foreign net operating loss carryforwards in France and Hong Kong of and respectively.

 

As of the liability for income taxes associated with uncertain tax positions was including accrued penalties and interest of If recognized, of the liability for uncertain tax positions would favorably affect the Company’s effective tax rate.

 

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

 

 

The liability for uncertain tax positions is reviewed quarterly and adjusted as events occur that affect potential liabilities for additional taxes, such as lapsing of applicable statutes of limitations, proposed assessments by tax authorities, negotiations with taxing authorities, identification of new issues, and enactment of new legislation, regulations or promulgation of new case law. Management believes that adequate amounts of tax and related interest, if any, have been provided for any adjustments that result from these examinations of uncertain tax positions. The Company does expect the liability for uncertain tax positions to change significantly over the next year.