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Income Taxes | 12 Months Ended
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Apr. 27, 2013
Income Taxes [Abstract] |
Income Taxes | Note 17: Income Taxes Income before income taxes consists of the following (for the fiscal years ended):
(Amounts in thousands) |  | 4/27/2013 |  |  | 4/28/2012 |  |  | 4/30/2011 |
United States |  | $ | 63,218 |  |  | $ | 60,538 |  |  | $ | 21,331 |
Foreign |  |  | 7,492 |  |  |  | 6,319 |  |  |  | 4,635 |
Total |  | $ | 70,710 |  |  | $ | 66,857 |  |  | $ | 25,966 |
Income tax expense applicable to continuing operations consists of the following components (for the fiscal years ended):
(Amounts in thousands) |  | 4/27/2013 |  |  | 4/28/2012 |  |  | 4/30/2011 |
Federal – current |  | $ | 16,873 |  |  | $ | 14,392 |  |  | $ | 5,935 |
– deferred |  |  | 1,524 |  |  |  | (38,396 | ) |  |  | — |
State – current |  |  | 2,718 |  |  |  | 3,663 |  |  |  | 930 |
– deferred |  |  | 493 |  |  |  | (1,843 | ) |  |  | 700 |
Foreign – current |  |  | 739 |  |  |  | 2,040 |  |  |  | 1,848 |
– deferred |  |  | 1,181 |  |  |  | (1,907 | ) |  |  | (820 | )
Total income tax expense (benefit) |  | $ | 23,528 |  |  | $ | (22,051 | ) |  | $ | 8,593 |
Our effective tax rate differs from the U.S. federal income tax rate for the following reasons:
(% of pre-tax income) |  | 4/27/2013 |  |  | 4/28/2012 |  |  | 4/30/2011 |
Statutory tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal benefit |  |  | 3.0 |  |  |  | 5.0 |  |  |  | 4.1 |
U.S. manufacturing benefit |  |  | (2.0 | ) |  |  | (2.3 | ) |  |  | (1.9 | )
Change in valuation allowance |  |  | (0.3 | ) |  |  | (69.1 | ) |  |  | 13.5 |
Change in value of life insurance contracts |  |  | (0.4 | ) |  |  | — |  |  |  | (0.6 | )
Tax benefit associated with VIE acquisition |  |  | — |  |  |  | — |  |  |  | (17.6 | )
Gain on sale of marketable securities |  |  | (1.6 | ) |  |  | — |  |  |  | — |
Miscellaneous items |  |  | (0.4 | ) |  |  | (1.6 | ) |  |  | 0.6 |
Effective tax rate |  |  | 33.3 | % |  |  | (33.0 | )% |  |  | 33.1 | %
For our Asian operating units, we continue to permanently reinvest the earnings and consequently do not record a deferred tax liability relative to the undistributed earnings. We have reinvested approximately $7.5 million of the earnings. The potential deferred tax attributable to these earnings would be approximately $2.0 million. The primary components of our deferred tax assets and (liabilities) were as follows:
(Amounts in thousands) |  | 4/27/2013 |  |  | 4/28/2012 |
Assets |  |  |  |  |  |
Deferred and other compensation |  | $ | 19,510 |  |  | $ | 15,043 |
Allowance for doubtful accounts |  |  | 9,567 |  |  |  | 9,547 |
State income tax – net operating losses, credits and other |  |  | 6,542 |  |  |  | 5,911 |
Pension |  |  | 4,632 |  |  |  | 11,220 |
Warranty |  |  | 5,937 |  |  |  | 5,436 |
Rent |  |  | 4,697 |  |  |  | 4,590 |
Workers' compensation |  |  | 3,804 |  |  |  | 3,485 |
Foreign net operating loss |  |  | 759 |  |  |  | 914 |
Capital loss carryover |  |  | — |  |  |  | 3,202 |
Other |  |  | 5,128 |  |  |  | 4,213 |
Valuation allowance |  |  | (6,619 | ) |  |  | (8,258 | )
Total deferred tax assets |  |  | 53,957 |  |  |  | 55,303 |
Liabilities |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | (2,745 | ) |  |  | (2,573 | )
Net deferred tax assets |  | $ | 51,212 |  |  | $ | 52,730 |
The deferred tax assets associated with loss carry forwards and the related expiration dates are as follows:
(Amounts in thousands) |  | Amount |  | Expiration
Various U.S. state net operating losses (excluding federal tax effect) |  | $ | 10,064 |  | Fiscal 2014 – 2033
Foreign net operating losses |  |  | 759 |  | Fiscal 2018 – 2029
Foreign capital losses |  |  | 23 |  | Indefinite
We evaluate our deferred taxes to determine if a valuation allowance is required. Accounting standards require that we assess whether a valuation allowance should be established based on the consideration of all available evidence using a "more likely than not" standard with significant weight being given to evidence that can be objectively verified. During fiscal 2012 we concluded that certain valuation allowances totaling $46.2 million associated with certain U.S. federal, state and Canadian deferred tax assets should be reversed because we believed that it had become more likely than not that the value of those deferred tax assets would be realized. The reduction in the valuation allowance was primarily the result of the following factors at the point we reduced the allowance: (i) our cumulative three-year pre-tax income position, (ii) our most recent operating results, which had exceeded both our operating plan and prior year results, and (iii) our then-current forecasts, all of which caused us to temper our concerns at that time regarding the economic environment. The evaluation of the amount of net deferred tax assets expected to be realized necessarily involves forecasting the amount of taxable income that will be generated in future years. We have forecasted future results using estimates management believes to be reasonable, which are based on objective evidence such as expected trends resulting from certain leading economic indicators. Based upon our net deferred tax asset position at April 27, 2013, we estimate that about $136 million of future taxable income would need to be generated to fully recover our net deferred tax assets. The realization of deferred income tax assets is dependent on future events. Actual results inevitably will vary from management's forecasts. Such variances could result in adjustments to the valuation allowance on deferred tax assets in future periods, and such adjustments could be material to the financial statements. During fiscal 2013, we recorded a $1.6 million decrease in our valuation allowance for deferred tax assets that are now considered more likely than not to be realized. A summary of the valuation allowance by jurisdiction is as follows:
Jurisdiction |  | 4/28/2012 |  |  |  |  |  | 4/27/2013 |
(Amounts in thousands) |  | Valuation Allowance |  |  | Change |  |  | Valuation Allowance |
U.S. federal |  | $ | 2,114 |  |  | $ | (2,114 | ) |  | $ | — |
U.S. state |  |  | 6,121 |  |  |  | 343 |  |  |  | 6,464 |
Foreign |  |  | 23 |  |  |  | 132 |  |  |  | 155 |
Total |  | $ | 8,258 |  |  | $ | (1,639 | ) |  | $ | 6,619 |
The remaining valuation allowance of $6.6 million primarily related to certain U.S. state and foreign deferred tax assets. The U.S. state deferred taxes are primarily related to state net operating losses. As of April 27, 2013, we had a gross unrecognized tax benefit of $3.2 million related to uncertain tax positions in various jurisdictions. A reconciliation of the beginning and ending balance of these unrecognized tax benefits is as follows:
(Amounts in thousands) |  | 4/27/2013 |  |  | 4/28/2012 |  |  | 4/30/2011 |
Balance at the beginning of the period |  | $ | 3,909 |  |  | $ | 4,492 |  |  | $ | 4,805 |
Additions: |  |  |  |  |  |  |  |  |  |  |  |
Positions taken during the current year |  |  | 338 |  |  |  | 147 |  |  |  | 100 |
Positions taken during the prior year |  |  | — |  |  |  | — |  |  |  | 229 |
Reductions: |  |  |  |  |  |  |  |  |  |  |  |
Positions taken during the current year |  |  | — |  |  |  | — |  |  |  | — |
Positions taken during the prior year |  |  | (28 | ) |  |  | (202 | ) |  |  | (359 | )
Decreases related to settlements with taxing authorities |  |  | — |  |  |  | (166 | ) |  |  | (202 | )
Reductions resulting from the lapse of the statute of limitations |  |  | (971 | ) |  |  | (362 | ) |  |  | (81 | )
Balance at the end of the period |  | $ | 3,248 |  |  | $ | 3,909 |  |  | $ | 4,492 |
We recognize interest and penalties associated with uncertain tax positions in income tax expense. Accrued interest and penalties decreased by $0.2 million during fiscal 2013. We had approximately $0.4 million accrued for interest and penalties as of April 27, 2013, and $0.6 million accrued for interest and penalties as of April 28, 2012. If recognized, $0.8 million of the total $3.2 million of unrecognized tax benefits would decrease our effective tax rate. It is reasonably possible that $0.2 million of this amount will be settled within the next 12 months. The remaining balance will be settled or released as tax audits are effectively settled, statutes of limitation expire or other new information becomes available. Our U.S. federal income tax returns for fiscal years 2010 and subsequent are still subject to audit. In addition, we conduct business in various states. The major states in which we conduct business are subject to audit for fiscal years 2009 and subsequent. Our businesses in Canada and Thailand are subject to audit for fiscal years 2003 and subsequent, and in Mexico, calendar years 2007 and subsequent. Cash paid for taxes (net of refunds received) during the fiscal years ended April 27, 2013, April 28, 2012, and April 30, 2011, were $20.5 million, $15.2 million and $9.1 million, respectively.

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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/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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