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Income Taxes | 12 Months Ended
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Apr. 02, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes Pretax income for the fiscal years ended April 2, 2022, April 3, 2021, and March 28, 2020 was attributable to the following tax jurisdictions:
|  | Year Ended |
(Dollars in thousands) |  | April 2, 2022 |  |  | April 3, 2021 |  |  | March 28, 2020 |
Domestic |  | $ | 300,675 |  |  | $ | 92,832 |  |  | $ | 76,224 |
Foreign |  |  | 29,754 |  |  |  | 18,568 |  |  |  | 8,830 |
Income before income taxes |  | $ | 330,429 |  |  | $ | 111,400 |  |  | $ | 85,054 |
The income tax provision by jurisdiction for the fiscal years ended April 2, 2022, April 3, 2021, and March 28, 2020 was as follows:
|  | Year Ended |
(Dollars in thousands) |  | April 2, 2022 |  |  | April 3, 2021 |  |  | March 28, 2020 |
Current: |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 55,983 |  |  | $ | 13,094 |  |  | $ | 9,360 |
Foreign |  |  | 7,907 |  |  |  | 4,738 |  |  |  | 1,938 |
State |  |  | 15,476 |  |  |  | 5,081 |  |  |  | 3,800 |
Total current |  | $ | 79,366 |  |  | $ | 22,913 |  |  | $ | 15,098 |
Deferred |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 2,367 |  |  | $ | 2,853 |  |  | $ | 5,660 |
Foreign |  |  | 1,118 |  |  |  | 851 |  |  |  | 5,214 |
State |  |  | (466 | ) |  |  | (116 | ) |  |  | 922 |
Total deferred |  | $ | 3,019 |  |  | $ | 3,588 |  |  | $ | 11,796 |
Total income tax expense |  | $ | 82,385 |  |  | $ | 26,501 |  |  | $ | 26,894 |
Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income before income taxes as a result of the following differences:
|  | Year Ended |
(Dollars in thousands) |  | April 2, 2022 |  |  | April 3, 2021 |  |  | March 28, 2020 |
Tax expense at U.S federal statutory rate |  | $ | 69,390 |  |  | $ | 23,394 |  |  | $ | 17,861 |
Increase (decrease) in rate resulting from: |  |  |  |  |  |  |  |  |
State taxes, net of U.S. federal benefit |  | $ | 11,908 |  |  | $ | 3,969 |  |  | $ | 4,491 |
Foreign tax rate differences |  |  | 1,417 |  |  |  | 900 |  |  |  | 502 |
Non-deductible compensation due to Section 162(m) |  |  | 1,119 |  |  |  | 586 |  |  |  | 1,007 |
Recognition of foreign investment basis difference |  |  | 1,076 |  |  |  | 616 |  |  |  | 25 |
Change in deferred tax valuation allowance |  |  | 189 |  |  |  | 1,343 |  |  |  | 3,652 |
Uncertain tax positions |  |  | - |  |  |  | - |  |  |  | (643 | )
Deferred tax rate changes |  |  | (200 | ) |  |  | (778 | ) |  |  | 538 |
Other permanent difference |  |  | (224 | ) |  |  | 265 |  |  |  | 844 |
U.S. tax credits |  |  | (2,296 | ) |  |  | (3,096 | ) |  |  | (1,005 | )
Other |  |  | 6 |  |  |  | (698 | ) |  |  | (378 | )
Total income tax expense |  | $ | 82,385 |  |  | $ | 26,501 |  |  | $ | 26,894 |
The Tax Cuts and Jobs Act enacted in 2017 (“Tax Act”) subjects a U.S. shareholder to current tax on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. The U.S. income tax rate for fiscal 2022, 2021, and 2020 was 21%. Deferred tax assets and liabilities at April 2, 2022 and April 3, 2021 consisted of the following:
(Dollars in thousands) |  | April 2, 2022 |  |  | April 3, 2021 |
ASSETS |  |  |  |  |  |
Employee compensation |  | $ | 12,042 |  |  | $ | 7,500 |
Intangible assets |  |  | 9,833 |  |  |  | 10,665 |
Warranty reserves |  |  | 8,043 |  |  |  | 7,041 |
Foreign net operating loss carryforwards |  |  | 6,470 |  |  |  | 6,250 |
Self-insurance reserves |  |  | 5,396 |  |  |  | 4,058 |
Lease assets |  |  | 2,774 |  |  |  | 2,879 |
Equity-based compensation |  |  | 2,206 |  |  |  | 1,333 |
Dealer volume discounts |  |  | 2,077 |  |  |  | 1,631 |
State net operating loss carryforwards |  |  | 2,023 |  |  |  | 2,372 |
U.S. tax credit carryforwards |  |  | 1,891 |  |  |  | 2,030 |
Inventory reserves and impairments |  |  | 1,750 |  |  |  | 1,558 |
Capitalized transaction costs |  |  | 299 |  |  |  | 377 |
Foreign capital loss carryforwards |  |  | 188 |  |  |  | 187 |
U.S. federal net operating loss carryforwards |  |  | - |  |  |  | 4,583 |
Other |  |  | 1,631 |  |  |  | 1,282 |
Gross deferred tax assets |  | $ | 56,623 |  |  | $ | 53,746 |
LIABILITIES |  |  |  |  |  |
Property, plant, and equipment |  |  | 9,901 |  |  |  | 8,213 |
Intangible assets |  |  | 7,834 |  |  |  | 9,470 |
Prepaid expenses |  |  | 5,574 |  |  |  | 658 |
Foreign tax basis difference in investments |  |  | 5,124 |  |  |  | 4,280 |
Lease liabilities |  |  | 2,774 |  |  |  | 2,879 |
Other |  |  | 49 |  |  |  | 60 |
Gross deferred tax liabilities |  | $ | 31,256 |  |  | $ | 25,560 |
Valuation allowance |  |  | (12,741 | ) |  |  | (12,552 | )
Net deferred tax assets |  | $ | 12,626 |  |  | $ | 15,634 |
The Company anticipates periodically repatriating the earnings of its Netherlands and Canadian subsidiaries. A deferred tax liability is recognized for income tax withholding which may be incurred upon the reversal of basis differences in investments in its foreign subsidiaries. The Company periodically evaluates the realizability of its deferred tax assets based on whether it is “more likely than not” that some portion of the deferred tax assets will not be realized. Our evaluation considers available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. The Company’s valuation allowance principally consists of valuation allowances for certain state NOL carryforwards, certain Canadian deferred tax assets, and the Company’s deferred tax assets in the Netherlands. As of April 2, 2022, the Company has state NOL carryforwards in various jurisdictions which expire primarily in 2022 through 2042. Unrecognized tax benefits represent the differences between tax positions taken or expected to be taken on a tax return and the benefits recognized for financial statement purposes. There were no unrecognized tax benefits at April 2, 2022 and April 3, 2021. The Company classifies interest and penalties on income tax uncertainties as a component of income tax expense. Accrued interest and penalties as of April 2, 2022 and April 3, 2021, were not significant. The Company estimates no material changes to uncertain tax benefits in the next twelve months. The Company is no longer subject to foreign tax examinations by tax authorities for years prior to fiscal 2018. The Company’s U.S. subsidiaries are subject to U.S. federal tax examinations for fiscal 2019 through fiscal 2022, and U.S. state tax examinations by tax authorities for fiscal 2018 through fiscal 2022.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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