Income Taxes (Tables)

12 Months Ended

May. 31, 2015

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 2015 and 2014, 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,
	2015			2014
	(Dollars in thousands)
Income taxes at statutory federal rate	$	(1,424	)	$	(2,484	)
State income taxes		(45	)		14
State net operating loss		(110	)		(296	)
New Energy Efficient Home Credit		(134	)		(137	)
Increase in deferred tax assets valuation allowance		1,570			2,862
Other, net		143			41

Income tax benefit	$	—		$	—

Effective tax rate		0	%		0	%

Components of Net Deferred Tax Assets

Components of the net deferred tax assets include:


	May 31,
	2015			2014
	(Dollars in thousands)
Current deferred tax assets
Accrued marketing programs	$	144		$	169
Accrued warranty expense		1,800			1,464
Accrued workers’ compensation		886			650
Accrued vacation		325			329
Other		522			223

Gross current deferred tax assets		3,677			2,835

Noncurrent deferred tax assets
Liability for certain post-retirement benefits		2,017			2,061
Accrued warranty expense		958			792
Federal net operating loss carryforward		33,120			30,488
Federal tax credit carryforward		1,501			1,345
State net operating loss carryforward		8,133			7,860
Depreciation		668			854
Other		(167	)		(32	)

Gross noncurrent deferred tax assets		46,230			43,368

Total gross deferred tax assets		49,907			46,203
Valuation allowance		(49,907	)		(46,203	)

Net deferred tax assets	$	—		$	—