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Note 8 - Income Taxes
 12 Months Ended
Apr. 29, 2023
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

8.

INCOME TAXES

 

The provision for income taxes consisted of the following:

 

  

(In thousands)

 
  

Fiscal

  

Fiscal

  

Fiscal

 
  

2023

  

2022

  

2021

 

Current

 $48,287  $42,555  $51,520 

Deferred

  (4,009)  6,529   2,471 

Total

 $44,278  $49,084  $53,991 

 

Deferred taxes are recorded to give recognition to temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. Valuation allowances are established to reduce the carrying amounts of deferred tax assets when it is deemed more likely than not that the benefit of deferred tax assets will not be realized. Deferred tax assets and liabilities at April 29, 2023 and April 30, 2022 consisted of the following:                                              

  

(In thousands)

 
  

2023

  

2022

 

Deferred tax assets:

        

Accrued expenses and other

 $4,671  $3,306 

Inventory and amortizable assets

  545   325 

Total deferred tax assets

  5,216   3,631 

Deferred tax liabilities:

        

Property

  23,715   23,863 

Intangibles and other

  1,315   3,591 

Total deferred tax liabilities

  25,030   27,454 

Net deferred tax liabilities

 $19,814  $23,823 

 

The reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:

 

  

Fiscal

  

Fiscal

  

Fiscal

 
  

2023

  

2022

  

2021

 

Statutory federal income tax rate

  21.0%  21.0%  21.0%

State income taxes, net of federal benefit

  2.9   2.9   2.9 

Other differences

  ( .2)  (.3)  (.2)

Effective income tax rate

  23.7%  23.6%  23.7%

 

At April 29, 2023, the gross amount of unrecognized tax benefits was $2.1 million and $6 thousand was recognized as tax expense in Fiscal 2023. If the Company were to prevail on all uncertain tax positions, the net effect would be to reduce our tax expense by approximately $1.7 million. A reconciliation of the changes in the gross amount of unrecognized tax benefits, which amounts are included in other liabilities in the accompanying consolidated balance sheets, is as follows:

 

  

(In thousands)

 
  

2023

  

2022

  

2021

 

Beginning balance

 $2,079  $2,055  $1,974 

Increases due to current period tax positions

  75   114   150 

Decreases due to lapse of statute of limitations and audit resolutions

  (58)  (90)  (69)

Ending balance

 $2,096  $2,079  $2,055 

 

Accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. At April 29, 2023, unrecognized tax benefits included accrued interest of $249 thousand of which approximately $1 thousand was recognized as tax expense in Fiscal 2023.

 

Annual income tax returns are filed in the United States and in various state and local jurisdictions. A number of years may elapse before an uncertain tax position, for which the Company has unrecognized tax benefits, are resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax positions, the Company believes that unrecognized tax benefits reflect the most probable outcome. The Company adjusts these unrecognized tax benefits, as well as the related interest, in light of changing facts and circumstances. The resolution of any particular uncertain tax position could require the use of cash and an adjustment to our provision for income taxes in the period of resolution. Federal income tax returns for years subsequent to Fiscal 2017 are subject to examination. Generally, the income tax returns for the various state jurisdictions are subject to examination for years ending after Fiscal 2016.