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Income Taxes | 12 Months Ended
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Apr. 24, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income before income taxes consists of the following:
|  | Fiscal Year Ended
|  | (52 weeks) |  | (52 weeks) |  | (52 weeks)
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020 |  | 4/27/2019
United States |  | $ | 124,547 |  |  | $ | 102,125 |  |  | $ | 73,058 |
Foreign |  | 21,366 |  |  | 13,048 |  |  | 22,269 |
Total |  | $ | 145,913 |  |  | $ | 115,173 |  |  | $ | 95,327 |
Income tax expense (benefit) consists of the following components:
|  | Fiscal Year Ended
|  | (52 weeks) |  | (52 weeks) |  | (52 weeks)
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020 |  | 4/27/2019
Federal |  |  |  |  |  |
Current |  | $ | 18,327 |  |  | $ | 25,026 |  |  | $ | 17,629 |
Deferred |  | 6,771 |  |  | 1,440 |  |  | (2,649) |
State |  |  |  |  |  |
Current |  | 6,475 |  |  | 7,901 |  |  | 6,199 |
Deferred |  | 2,339 |  |  | (1,409) |  |  | (933) |
Foreign |  |  |  |  |  |
Current |  | 4,451 |  |  | 3,025 |  |  | 4,919 |
Deferred |  | 21 |  |  | 206 |  |  | 21 |
Total income tax expense |  | $ | 38,384 |  |  | $ | 36,189 |  |  | $ | 25,186 |
Our effective tax rate differs from the U.S. federal income tax rate for the following reasons:
|  | Fiscal Year Ended
|  | (52 weeks) |  | (52 weeks) |  | (52 weeks)
(% of income before income taxes) |  | 4/24/2021 |  | 4/25/2020 |  | 4/27/2019
Statutory tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (reduction) in income taxes resulting from: |  |  |  |  |  |
State income taxes, net of federal benefit |  | 4.3 | % |  | 4.2 | % |  | 4.1 | %
Tax effect of defined benefit pension plan termination |  | — | % |  | — | % |  | 2.7 | %
Gains and losses on corporate owned life insurance |  | (1.2) | % |  | 0.5 | % |  | (0.2) | %
Change in valuation allowance |  | 0.7 | % |  | 0.7 | % |  | 0.6 | %
U.S. research tax credits |  | (0.5) | % |  | (0.6) | % |  | (0.8) | %
Non-deductible asset impairment |  | — | % |  | 4.9 | % |  | — | %
Fair value adjustment of contingent consideration liability |  | 2.0 | % |  | (1.4) | % |  | — | %
Tax on undistributed foreign earnings |  | — | % |  | 1.1 | % |  | — | %
Miscellaneous items |  | — | % |  | 1.0 | % |  | (1.0) | %
Effective tax rate |  | 26.3 | % |  | 31.4 | % |  | 26.4 | %
For our Canada, Mexico, and United Kingdom foreign operating units, we permanently reinvest the earnings and consequently do not record a deferred tax liability relative to the undistributed earnings. We have reinvested approximately $45.8 million of the earnings. After enactment of the Tax Cuts and Jobs Act in 2017, the potential deferred tax attributable to these earnings would be approximately $1.4 million, primarily related to foreign withholding taxes and state income taxes. The Company changed its permanent reinvestment position on undistributed earnings for its Thailand foreign operating units and provided for deferred tax attributable to those earnings of approximately $1.3 million in fiscal 2020. The primary components of our deferred tax assets and (liabilities) were as follows:
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020 |  |
Assets |  |  |  |  |  |
Leases |  | $ | 88,536 |  |  | $ | 81,537 |  |  |
Deferred and other compensation |  | 21,361 |  |  | 20,821 |  |  |
State income tax—net operating losses, credits and other |  | 6,222 |  |  | 5,536 |  |  |
Warranty |  | 5,709 |  |  | 5,797 |  |  |
Inventory |  | 530 |  |  | — |  |  |
Workers' compensation |  | 2,559 |  |  | 2,567 |  |  |
Bad debt |  | 1,326 |  |  | 2,061 |  |  |
Employee benefits |  | 1,904 |  |  | 3,441 |  |  |
Federal net operating losses, credits |  | 1,286 |  |  | 1,663 |  |  |
Other |  | — |  |  | 2,354 |  |  |
Valuation allowance |  | (3,495) |  |  | (2,137) |  |  |
Total deferred tax assets |  | 125,938 |  |  | 123,640 |  |  |
Liabilities |  |  |  |  |  |
Right of use lease assets |  | (84,440) |  |  | (77,479) |  |  |
Property, plant and equipment |  | (17,837) |  |  | (14,893) |  |  |
Inventory |  | — |  |  | (827) |  |  |
Goodwill and other intangibles |  | (10,084) |  |  | (8,286) |  |  |
Tax on undistributed foreign earnings |  | (752) |  |  | (1,316) |  |  |
Other |  | (910) |  |  | — |  |  |
Net deferred tax assets |  | $ | 11,915 |  |  | $ | 20,839 |  |  |
The deferred tax assets associated with loss carry forwards and the related expiration dates are as follows:
(Amounts in thousands) |  | Amount |  | Expiration
Federal net operating losses |  | $ | 1,286 |  |  | Fiscal 2038 - 2039
Various U.S. state net operating losses (excluding federal tax effect) |  | 2,698 |  |  | Fiscal 2022 - 2037
Foreign capital losses |  | 17 |  |  | 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. 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. We based these estimates on objective evidence such as expected trends resulting from certain leading economic indicators. Based upon our net deferred tax asset position at April 24, 2021, we estimate that approximately $31.6 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 which may be impacted by the COVID-19 pandemic, possibly resulting in a sustained economic downturn, or significantly extended economic recovery. 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 2021, we recorded a $1.4 million increase in our valuation allowance for deferred tax assets that are not considered more likely than not to be realized. This determination was primarily due to state tax credits and the limitations on the realization of deferred tax assets related to executive compensation. A summary of the valuation allowance by jurisdiction is as follows:
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020 |  | Change
U.S. Federal |  | $ | 1,391 |  |  | $ | 1,172 |  |  | $ | 219 |
U.S. State |  | 2,087 |  |  | 948 |  |  | 1,139 |
Foreign |  | 17 |  |  | 17 |  |  | — |
Total |  | $ | 3,495 |  |  | $ | 2,137 |  |  | $ | 1,358 |
The remaining valuation allowance of $3.5 million primarily related to certain U.S. federal, state and foreign deferred tax assets. The U.S. federal deferred taxes are primarily due to limitations on the realization of deferred taxes related to executive compensation. The U.S. state deferred taxes are primarily related to state net operating losses. As of April 24, 2021, we had a gross unrecognized tax benefit of $1.1 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:
|  | Fiscal Year Ended
|  | (52 weeks) |  | (52 weeks) |  | (52 weeks)
(Amounts in thousands) |  | 4/24/2021 |  | 4/25/2020 |  | 4/27/2019
Balance at the beginning of the period |  | $ | 1,030 |  |  | $ | 1,069 |  |  | $ | 1,014 |
Additions: |  |  |  |  |  |
Positions taken during the current year |  | 176 |  |  | 174 |  |  | 187 |
Positions taken during the prior year |  | 35 |  |  | 106 |  |  | — |
Reductions: |  |  |  |  |  |
Positions taken during the prior year |  | (19) |  |  | — |  |  | (36) |
Decreases related to settlements with taxing authorities |  | — |  |  | (211) |  |  | — |
Reductions resulting from the lapse of the statute of limitations |  | (153) |  |  | (108) |  |  | (96) |
Balance at the end of the period |  | $ | 1,069 |  |  | $ | 1,030 |  |  | $ | 1,069 |
We recognize interest and penalties associated with uncertain tax positions in income tax expense. We had approximately $0.4 million and $0.3 million accrued for interest and penalties as of April 24, 2021, and April 25, 2020, respectively. If recognized, $0.9 million of the total $1.1 million of unrecognized tax benefits would decrease our effective tax rate. We do not expect that the net liability for uncertain income tax positions will significantly change 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 2018 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 2017 and subsequent. Our foreign operations are subject to audit for fiscal years 2011 and subsequent. Cash paid for taxes (net of refunds received) during the fiscal years ended April 24, 2021, April 25, 2020, and April 27, 2019, was $40.5 million, $24.7 million, and $23.8 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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