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Note 9 - Income Taxes
 6 Months Ended
Oct. 30, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 9. Income Taxes

 

The provision for income taxes during interim reporting periods is calculated by applying an estimate of the annual effective tax rate to “ordinary” income or loss for the reporting period, adjusted for discrete items. Due to various factors, including our estimate of annual income, our effective tax rate is subject to fluctuation.

 

Our effective tax rate for the three and six months ended October 30, 2021 was 29.6 and 27.0 percent, respectively, as compared to an effective rate of 41.1 and 26.2 percent for the three and six months ended October 31, 2020. The difference in tax rates is primarily driven by a decrease in estimated tax credits proportionate to an increase in estimated pre-tax earnings in the second quarter of fiscal 2021 compared to the second quarter of fiscal 2022. 

 

We operate both domestically and internationally and, as of October 30, 2021, undistributed earnings of our foreign subsidiaries were considered to be reinvested indefinitely. Additionally, as of  October 30, 2021, we had $682 of unrecognized tax benefits which would reduce our effective tax rate if recognized.