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Income Taxes
 12 Months Ended
Mar. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
12.
Income Taxes

Pretax income for the fiscal years ended March 30, 2024, April 1, 2023, and April 2, 2022 was attributable to the following tax jurisdictions:

 

 

Year Ended

 

(Dollars in thousands)

 

March 30,
2024

 

 

April 1,
2023

 

 

April 2,
2022

 

 

 

 

 

 

 

 

Domestic

 

$

175,465

 

 

$

499,715

 

 

$

300,675

 

Foreign

 

 

25,390

 

 

 

34,181

 

 

 

29,754

 

Income before income taxes

 

$

200,855

 

 

$

533,896

 

 

$

330,429

 

 

The income tax provision by jurisdiction for the fiscal years ended March 30, 2024, April 1, 2023, and April 2, 2022 was as follows:

 

 

Year Ended

 

(Dollars in thousands)

 

March 30,
2024

 

 

April 1,
2023

 

 

April 2,
2022

 

 

 

 

 

 

 

 

Current:

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

37,105

 

 

$

98,242

 

 

$

55,983

 

Foreign

 

 

5,058

 

 

 

8,560

 

 

 

7,907

 

State

 

 

11,200

 

 

 

24,000

 

 

 

15,476

 

Total current

 

$

53,363

 

 

$

130,802

 

 

$

79,366

 

Deferred

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

(6,873

)

 

$

78

 

 

$

2,367

 

Foreign

 

 

2,249

 

 

 

1,440

 

 

 

1,118

 

State

 

 

(1,603

)

 

 

(226

)

 

 

(466

)

Total deferred

 

$

(6,227

)

 

$

1,292

 

 

$

3,019

 

Total income tax expense

 

$

47,136

 

 

$

132,094

 

 

$

82,385

 

 

 

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)

 

March 30,
2024

 

 

April 1,
2023

 

 

April 2,
2022

 

 

 

 

 

 

 

 

 

 

 

Tax expense at U.S federal statutory rate

 

$

42,180

 

 

$

112,118

 

 

$

69,390

 

Increase (decrease) in rate resulting from:

 

 

 

 

 

 

 

 

 

State taxes, net of U.S. federal benefit

 

$

7,575

 

 

$

18,956

 

 

$

11,908

 

Non-deductible compensation due to Section 162(m)

 

 

2,435

 

 

 

1,924

 

 

 

1,119

 

Foreign tax rate differences

 

 

1,134

 

 

 

1,566

 

 

 

1,417

 

Recognition of foreign investment basis difference

 

 

955

 

 

 

1,249

 

 

 

1,076

 

Change in deferred tax valuation allowance

 

 

(333

)

 

 

(703

)

 

 

189

 

U.S. tax credits

 

 

(6,129

)

 

 

(2,694

)

 

 

(2,296

)

Other

 

 

(681

)

 

 

(322

)

 

 

(418

)

Total income tax expense

 

$

47,136

 

 

$

132,094

 

 

$

82,385

 

The U.S. income tax rate for fiscal 2024, 2023, and 2022 was 21%.

Deferred tax assets and liabilities at March 30, 2024 and April 1, 2023 consisted of the following:

(Dollars in thousands)

 

March 30,
2024

 

 

April 1,
2023

 

ASSETS

 

 

 

 

 

 

Warranty reserves

 

 

11,328

 

 

 

8,889

 

Lease assets

 

 

9,573

 

 

 

7,487

 

Intangible assets

 

 

8,448

 

 

 

8,763

 

Accrued product liability - water intrusion

 

 

8,353

 

 

 

-

 

Foreign net operating loss carryforwards

 

 

6,343

 

 

 

6,343

 

Capitalized research expenditures

 

 

6,312

 

 

 

-

 

Self-insurance reserves

 

 

4,840

 

 

 

5,851

 

Equity-based compensation

 

 

4,720

 

 

 

3,258

 

Employee compensation

 

 

4,245

 

 

 

7,320

 

Inventory reserves and impairments

 

 

3,427

 

 

 

2,599

 

Dealer volume discounts

 

 

1,821

 

 

 

2,749

 

Other

 

 

3,323

 

 

 

3,987

 

Gross deferred tax assets

 

$

72,733

 

 

$

57,246

 

LIABILITIES

 

 

 

 

 

 

Property, plant, and equipment

 

$

20,329

 

 

$

13,367

 

Lease liabilities

 

 

9,553

 

 

 

7,487

 

Foreign tax basis difference in investments

 

 

6,905

 

 

 

5,964

 

Intangible assets

 

 

3,418

 

 

 

5,974

 

Other

 

 

850

 

 

 

958

 

Gross deferred tax liabilities

 

 

41,055

 

 

 

33,750

 

Valuation allowance

 

 

(11,705

)

 

 

(12,038

)

Net deferred tax assets

 

$

19,973

 

 

$

11,458

 

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 March 30, 2024, the Company has state NOL carryforwards in various jurisdictions which expire primarily in 2024 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 March 30, 2024 and April 1, 2023.

The Company is no longer subject to foreign tax examinations by tax authorities for years prior to fiscal 2020. The Company’s U.S. subsidiaries are subject to U.S. federal tax examinations for fiscal 2021 through fiscal 2024, and U.S. state tax examinations by tax authorities for fiscal 2020 through fiscal 2024.