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Income Taxes
9 Months Ended
Jan. 26, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Note 13. Income Taxes

We calculate the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Due to various factors and operating in multiple state and foreign jurisdictions, our effective tax rate is subject to fluctuation. We recorded an effective tax rate of 55.4 percent and (71.8) percent for the three and nine months ended January 26, 2019, respectively, and an effective tax rate of (67.0) percent and 47.2 percent for the three and nine months ended January 27, 2018, respectively. The changes in the effective tax rates are due to tax credits proportionate to pre-tax book income, the release of $2,775 in unrecognized tax benefits related to a lapse of statute, the release of $480 for a valuation allowance reversal related to foreign net operating loss carryforwards, and a decrease in the federal statutory tax rate from 30.4 percent to 21 percent pursuant to the Tax Act as compared to the same prior year periods, which included a re-measurement of deferred taxes resulting in a $3,679 impact to tax expense due to the lowering of the tax rate under the Tax Act. The Tax Act reduced the federal normal statutory rate from 35 percent to 21 percent; however, since we are a fiscal year tax filer, a blended rate of 30.4 percent was used for fiscal year 2018.

Pursuant to the Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Act (SAB 118), which allows us to record provisional amounts during a measurement period not to extend beyond one year from the enactment date of December 22, 2017. As of January 26, 2019, the accounting for the remeasurement of U.S. deferred tax assets and deemed repatriation tax was finalized, resulting in additional tax expense of $12 and $5, respectively. We have also elected to recognize tax resulting from any Global Intangible Low Taxed Income (GILTI) inclusion as a period cost if, and when, incurred. We have not previously provided deferred taxes on unremitted earnings attributable to foreign subsidiaries that have been considered to be reinvested indefinitely. The full effects of the Tax Act require a reassessment of previous indefinite reinvestment assertions with respect to certain jurisdictions. As of January 26, 2019, undistributed earnings of our foreign subsidiaries were considered to have been reinvested indefinitely.

We are subject to U.S. federal income tax as well as income taxes of multiple state and foreign jurisdictions. Fiscal years 2016- 2018 remain open to federal tax examinations and fiscal years 2015-2018 for state income tax examinations.  Certain subsidiaries are also subject to income tax in several foreign jurisdictions which have open tax years varying by jurisdiction beginning in fiscal 2008. In the event of any future tax assessments, we have elected to record the income taxes and any related interest and penalties as income tax expense on our condensed consolidated statement of operations.

As of January 26, 2019, we had $575 of unrecognized tax benefits which would reduce our effective tax rate if recognized.