Income Taxes (Tables)

12 Months Ended

May 31, 2014

State Income Taxes and Changes in Deferred Tax Assets Valuation Allowance

The difference between the Corporation’s statutory federal income tax rate of 34 percent in fiscal 2014 and 2013, and the effective income tax rate is due primarily to state income taxes and changes in deferred tax assets valuation allowance and are as follows:


	Year ended May 31,
	2014			2013
	(Dollars in thousands)
Income taxes at statutory federal rate	$	(4,034	)	$	(3,574	)
State income taxes		23			93
State net operating loss		(480	)		(605	)
New Energy Efficient Home Credit		(137	)		(91	)
Increase in deferred tax assets valuation allowance		4,561			4,189
Other, net		67			(12	)

Income tax benefit	$	—		$	—

Effective tax rate		0	%		0	%

Components of Net Deferred Tax Assets

Components of the net deferred tax assets include:


	May 31,
	2014			2013
	(Dollars in thousands)
Current deferred tax assets
Accrued marketing programs	$	169		$	55
Accrued warranty expense		1,464			1,466
Accrued workers’ compensation		650			638
Accrued vacation		329			319
Other		223			143

Gross current deferred tax assets		2,835			2,621

Noncurrent deferred tax assets
Liability for certain post-retirement benefits		2,061			2,252
Accrued warranty expense		792			876
Federal net operating loss carryforward		30,488			26,616
Federal tax credit carryforward		1,345			1,205
State net operating loss carryforward		7,860			7,380
Depreciation		854			735
Other		(32	)		(43	)

Gross noncurrent deferred tax assets		43,368			39,021

Total gross deferred tax assets		46,203			41,642
Valuation allowance		(46,203	)		(41,642	)

Net deferred tax assets	$	—		$	—