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Income Taxes | 12 Months Ended
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May. 02, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Note 13. Income Taxes The pretax income attributable to domestic and foreign operations was as follows:
| Year Ended
| May 2, 2015 |  | April 26, 2014 |  | April 27, 2013
Domestic | $ | 29,194 |  |  | $ | 35,699 |  |  | $ | 27,667 |
Foreign | 2,489 |  |  | 1,542 |  |  | 3,262 |
Income before income taxes | $ | 31,683 |  |  | $ | 37,241 |  |  | $ | 30,929 |
Income tax expense consisted of the following:
| Year Ended
| May 2, 2015 |  | April 26, 2014 |  | April 27, 2013
Current: |  |  |  |  |
Federal | $ | 6,657 |  |  | $ | 11,342 |  |  | $ | 9,517 |
State | 1,150 |  |  | 1,454 |  |  | 2,219 |
Foreign | 848 |  |  | 696 |  |  | 754 |
Deferred: |  |  |  |  |
Federal | 1,906 |  |  | 1,241 |  |  | (3,114 | )
State | 307 |  |  | 667 |  |  | (1,090 | )
Foreign | (67 | ) |  | (365 | ) |  | (136 | )
| $ | 10,801 |  |  | $ | 15,035 |  |  | $ | 8,150 |
A reconciliation of the provision for income taxes and the amount computed by applying the federal statutory rate to income before income taxes is as follows:
|  | Year Ended
|  | May 2, 2015 |  | April 26, 2014 |  | April 27, 2013
Computed income tax expense (benefit) at federal, state and local jurisdiction statutory rates |  | $ | 11,089 |  |  | $ | 13,035 |  |  | $ | 10,825 |
State taxes, net federal benefit |  | 1,016 |  |  | 1,433 |  |  | 684 |
Research and development tax credit |  | (1,292 | ) |  | (750 | ) |  | (1,804 | )
Meals and entertainment |  | 369 |  |  | 344 |  |  | 308 |
Stock compensation |  | 566 |  |  | 586 |  |  | 466 |
Dividends paid to retirement plan |  | (352 | ) |  | (328 | ) |  | (616 | )
Domestic production activities deduction |  | (529 | ) |  | (1,012 | ) |  | (976 | )
Change in valuation allowances |  | (2,295 | ) |  | 2,301 |  |  | — |
Change in uncertain tax positions |  | 2,357 |  |  | 111 |  |  | (70 | )
Other, net |  | (128 | ) |  | (685 | ) |  | (667 | )
|  | $ | 10,801 |  |  | $ | 15,035 |  |  | $ | 8,150 |
The components of the net deferred tax asset were as follows:
| May 2, 2015 |  | April 26, 2014
Deferred tax assets: |  |  |
Warranty reserves | $ | 10,038 |  |  | $ | 10,432 |
Vacation accrual | 1,808 |  |  | 1,510 |
Net losses on equity investments | — |  |  | 2,870 |
Deferred maintenance revenue | 745 |  |  | 1,332 |
Reserves for excess and obsolete inventory | 939 |  |  | 981 |
Equity compensation | 828 |  |  | 899 |
Allowance for doubtful accounts | 613 |  |  | 797 |
Inventory capitalization | 531 |  |  | 306 |
Accrued compensation and benefits | 1,124 |  |  | 1,397 |
Intangible assets | — |  |  | 56 |
Unrealized loss on foreign currency exchange | 554 |  |  | 206 |
Net operating loss carry forwards | 791 |  |  | 766 |
Other | 344 |  |  | 379 |
| 18,315 |  |  | 21,931 |
Valuation allowance on equity investments | (52 | ) |  | (2,297 | )
| 18,263 |  |  | 19,634 |
Deferred tax liabilities: |  |  |  |  |
Property and equipment | (7,249 | ) |  | (6,232 | )
Prepaid expenses | (577 | ) |  | (574 | )
Other | (34 | ) |  | (162 | )
| (7,860 | ) |  | (6,968 | )
| $ | 10,403 |  |  | $ | 12,666 |
The classification of net deferred tax assets in the accompanying consolidated balance sheets is:
| May 2, 2015 |  | April 26, 2014
Current assets | $ | 10,640 |  |  | $ | 10,694 |
Current liabilities | — |  |  | (27 | )
Non-current assets | 702 |  |  | 2,000 |
Non-current liabilities | (939 | ) |  | (1 | )
| $ | 10,403 |  |  | $ | 12,666 |
The changes in the amounts recorded for uncertain tax positions are:
| May 2, 2015 | April 26, 2014 | April 27, 2013
Balance at beginning of year | $ | 494 |  | $ | 379 |  | $ | 449 |
Gross increases related to prior period tax positions | 6 |  | 16 |  | — |
Gross decreases related to prior period tax positions | — |  | — |  | (11 | )
Gross increases related to current period tax positions | 2,496 |  | 99 |  | 129 |
Lapse of statute of limitations | (105 | ) | — |  | (188 | )
Balance at end of year | $ | 2,891 |  | $ | 494 |  | $ | 379 |
All of our unrecognized tax benefits would have an impact on the effective tax rate if recognized. It is reasonably possible that the amount of unrecognized tax benefits could change due to one or more of the following events in the next 12 months: expiring statutes, audit activity, tax payments, or competent authority proceedings. We are not able to reasonably estimate the amount or the future periods in which changes in unrecognized tax benefits may be resolved; however, we do not anticipate any significant changes within the next 12 months. Interest and penalties incurred associated with uncertain tax positions are included in other (expense) income. Our fiscal 2014 financial results included a deferred asset tax valuation allowance of $2,297 for a one-time valuation allowance. The corresponding deferred tax asset was related to potential capital losses from an investment in an affiliate ("affiliate") that is a United States entity. During the fourth quarter of fiscal 2014, we were notified that the affiliate had sold off a significant portion of its operations for a substantial loss. This loss puts us in doubt of any financial recovery of our investment in affiliate. Although the full capital loss of the affiliate has not yet been triggered under the Code, we have concluded that it would be more likely than not a capital loss if the affiliate goes out of business or we abandon the partnership. A tax court case solidified capital loss treatment versus ordinary gain treatment in abandonments. The Tax Court's decision in Pilgrim's Pride Corporation v. Commissioner and Code Sections 165 and 1234A state that loss deductions related to worthless security abandonments would be treated as a capital loss versus an ordinary loss. In fiscal 2015, the Tax Court's decision in Pilgrim's Pride Corporation v. Commissioner was overturned by the federal Fifth Circuit Court of Appeals. Hence, we abandoned our partnership interest and will record an ordinary loss on our 2015 federal tax return, thereby moving the asset and valuation allowance into our current tax provision and recording a current deduction. Because our position has a chance of being disallowed, we believe we cannot reach the more-likely-than not conclusion that this ordinary loss will be realized. Therefore, we have maintained an uncertain tax provision reserve. We will continue to evaluate the facts and circumstances of this case and adjust our reserve accordingly. Additional tax information: In the normal course of business, income tax authorities in various income tax jurisdictions both within the United States and internationally conduct routine audits of our income tax returns filed in prior years. Income tax years are open for the United States jurisdiction for fiscal years 2012, 2013 and 2014. International jurisdictions have open tax years varying by location beginning in fiscal 2005. We have no deferred tax liability recognized relating to our investment in foreign subsidiaries where the earnings have been indefinitely reinvested. If circumstances change and it becomes apparent that some or all of the undistributed untaxed earnings of a subsidiary will be remitted to the United States, we will accrue a tax expense at the time of the remittance. We have approximately $10,437 of untaxed earnings which have indefinitely been reinvested. Determination of the amount of any unrecognized deferred income tax liability on these is not practicable. We have income tax net operating loss carryforwards related to our international operations of approximately $2,386 and a $791 deferred tax asset. These loss carryforwards do not expire; therefore, the deferred tax asset has an indefinite life. Realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. We recognized an expense of $14, $20 and $10 in net interest and penalties during the years ended May 2, 2015, April 26, 2014 and April 27, 2013, respectively. Interest and penalties recognized are recorded in income taxes in our consolidated statements of operations. We had accrued $16 and $15 in net interest or penalties as of May 2, 2015 and April 26, 2014, 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 Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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 3: 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 4: 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 5: 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 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
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