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Income Taxes | 12 Months Ended
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Apr. 28, 2012
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We account for uncertainties in tax positions under the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes, an Interpretation of SFAS No. 109. ASC 740-10 creates a single model to address uncertainty in tax positions and clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740-10 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The following table provides a reconciliation of changes in unrecognized tax benefits for fiscal 2012 and 2011:
| Amount
Balance as of May 1, 2010: | $ | 538 |
Gross increases related to prior period tax positions | 132 |
Gross decreases related to prior period tax positions | (104 | )
Gross increases related to current period tax positions | 81 |
Lapse of statute of limitations | (120 | )
Balance as of April 30, 2011: | $ | 527 |
Gross increases related to prior period tax positions | 14 |
Gross decreases related to prior period tax positions | (178 | )
Gross increases related to current period tax positions | 86 |
Lapse of statute of limitations | — |
Balance as of April 28, 2012: | $ | 449 |
As a result of the preliminary results of an IRS audit which is subject to change, we expect our unrecognized tax benefits to reduce in fiscal 2013. We recorded $11, $(20) and $58 in net interest and penalties during the years ended April 28, 2012, April 30, 2011 and May 1, 2010, respectively. We had accrued $(12) and $4 in net interest or penalties as of April 28, 2012 and April 30, 2011, respectively. We are subject to U.S. Federal income tax as well as the income taxes of multiple state jurisdictions. As a result of the completion of exams by the Internal Revenue Service on prior years and the expiration of statutes of limitations, fiscal years 2009, 2010, and 2011 are the only years remaining open under statutes of limitations. Certain subsidiaries are also subject to income tax in several foreign jurisdictions which have open tax years varying by jurisdiction beginning in fiscal 2004. During the third quarter of fiscal 2011, the President signed into law a reinstatement of the research and development tax credit, retroactively to January 1, 2010. This reinstatement was effective only through December 31, 2011. As a result, we recognized approximately $686 in benefits, of which approximately $211 related to fiscal 2010. Income tax expense (benefit) consisted of the following:
| Year Ended
| April 28, 2012 |  | April 30, 2011 |  | May 1, 2010
Current: |  |  |  |  |
Federal | $ | 2,266 |  |  | $ | 4,879 |  |  | $ | (1,375 | )
State | 577 |  |  | 1,227 |  |  | 145 |
Foreign | 313 |  |  | 939 |  |  | (43 | )
Deferred taxes | (68 | ) |  | 852 |  |  | 120 |
| $ | 3,088 |  |  | $ | 7,897 |  |  | $ | (1,153 | )
A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory rate to income (loss) before income taxes is as follows:
|  | Year Ended
|  | April 28, 2012 |  | April 30, 2011 |  | May 1, 2010
Computed income tax expense (benefit) at federal statutory rate |  | $ | 4,052 |  |  | $ | 7,732 |  |  | $ | (2,849 | )
State taxes, net of federal benefit |  | 497 |  |  | 1,107 |  |  | 263 |
Research and development tax credit |  | (1,004 | ) |  | (981 | ) |  | (689 | )
Meals and entertainment |  | 375 |  |  | 299 |  |  | 272 |
Stock compensation |  | 842 |  |  | 959 |  |  | 1,134 |
Dividends paid to retirement plan |  | (522 | ) |  | — |  |  | — |
Goodwill impairment |  | — |  |  | — |  |  | 305 |
Domestic production activities deduction |  | (270 | ) |  | (607 | ) |  | — |
Change in foreign deferred rates |  | (249 | ) |  | — |  |  | — |
Reversal of valuation allowance |  | (364 | ) |  | — |  |  | — |
Other, net |  | (269 | ) |  | (612 | ) |  | 411 |
|  | $ | 3,088 |  |  | $ | 7,897 |  |  | $ | (1,153 | )
At April 28, 2012, we had foreign net operating loss carry-forwards totaling $186, which have an unlimited carry-forward period. We operated under a tax holiday in China that expired in fiscal 2012. As noted above, the expiration of this tax holiday caused a $249 decrease in our income tax expense in fiscal 2012. The pretax income (loss) attributable to domestic and foreign operations was as follows:
| Year Ended
| April 28, 2012 |  | April 30, 2011 |  | May 1, 2010
Domestic | $ | 10,052 |  |  | $ | 17,892 |  |  | $ | (6,423 | )
Foreign | 1,525 |  |  | 4,249 |  |  | (1,719 | )
Income (loss) before income taxes | $ | 11,577 |  |  | $ | 22,141 |  |  | $ | (8,142 | )
The components of the net deferred tax asset were as follows:
| April 28, 2012 |  | April 30, 2011 |  | May 1, 2010
Deferred taxes assets: |  |  |  |  |
Warranty reserves | $ | 8,425 |  |  | $ | 8,730 |  |  | $ | 9,271 |
Vacation accrual | 1,821 |  |  | 1,680 |  |  | 1,570 |
Net losses on equity investments | 2,971 |  |  | 2,959 |  |  | 3,095 |
Deferred maintenance revenue | 1,738 |  |  | 1,620 |  |  | 754 |
Reserves for excess and obsolete inventory | 1,021 |  |  | 665 |  |  | 1,297 |
Equity compensation | 653 |  |  | 557 |  |  | 486 |
Allowance for doubtful accounts | 473 |  |  | 409 |  |  | 401 |
Inventory capitalization | 907 |  |  | 414 |  |  | 478 |
Accrued compensation and benefits | 742 |  |  | 900 |  |  | 753 |
Intangible assets | 81 |  |  | 147 |  |  | 125 |
Net operating loss carry forwards | 15 |  |  | — |  |  | 59 |
Other | 334 |  |  | 214 |  |  | 174 |
| 19,181 |  |  | 18,295 |  |  | 18,463 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property and equipment | (8,817 | ) |  | (7,866 | ) |  | (7,368 | )
Prepaid expenses | (669 | ) |  | (470 | ) |  | (543 | )
Other | (219 | ) |  | (551 | ) |  | (292 | )
| (9,705 | ) |  | (8,887 | ) |  | (8,203 | )
| $ | 9,476 |  |  | $ | 9,408 |  |  | $ | 10,260 |
At April 28, 2012 and April 30, 2011, we had recorded valuation allowances of $0 and $364, respectively, against foreign net operating losses. We believe that our deferred tax assets will be fully realized based upon our estimates of the future taxable income. The following presents the classification of the net deferred tax asset on the accompanying consolidated balance sheets:
| April 28, 2012 |  | April 30, 2011 |  | May 1, 2010
Current assets | $ | 10,941 |  |  | $ | 9,640 |  |  | $ | 12,578 |
Current liabilities | (42 | ) |  | (406 | ) |  | (210 | )
Non-current assets | 30 |  |  | 180 |  |  | 62 |
Non-current liabilities | (1,453 | ) |  | (6 | ) |  | (2,170 | )
| $ | 9,476 |  |  | $ | 9,408 |  |  | $ | 10,260 |

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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 Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: 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 Reference 6: 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 7: 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 8: 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 + Details
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