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Income Taxes
 12 Months Ended
Apr. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following tables reflect the significant components of our income tax provision. The pretax income (loss) attributable to domestic and foreign operations was as follows:
Year Ended
April 30, 2022May 1, 2021May 2, 2020
Domestic$(2,696)$10,413 $(4,187)
Foreign3,804 3,647 4,178 
Income (loss) before income taxes$1,108 $14,060 $(9)
Income tax expense (benefit) consisted of the following:
Year Ended
April 30, 2022May 1, 2021May 2, 2020
Current:
Federal$644 $507 $625 
State452 422 297 
Foreign975 891 761 
Deferred:
Federal(1,020)1,216 (2,028)
State(476)59 (321)
Foreign(59)39 166 
$516 $3,134 $(500)
The reconciliation of the provision (benefit) 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 30, 2022May 1, 2021May 2, 2020
Computed income tax expense (benefit) at federal statutory rates$233 $2,953 $(2)
Change in uncertain tax positions(71)(34)4 
Research and development tax credit(382)(1,047)(1,621)
Other, net(227)403 (241)
Change in valuation allowances609 402 482 
GILTI(14)(156)149 
Base Erosion Anti-Abuse Tax (BEAT)12 (285)301 
Stock compensation150 355 318 
Meals and entertainment67 49 305 
Dividends paid to retirement plan— — (111)
State taxes, net of federal benefit139 494 (84)
$516 $3,134 $(500)

The effective income tax rate for fiscal 2022 was impacted by tax benefits from permanent tax credits offset by valuation allowances as well as other various permanent tax adjustments and state taxes with additional expense for prior year provision to return adjustments.

During fiscal 2021, our effective income tax rate was impacted due to tax benefits from permanent tax credits and prior year provision to return adjustments offset by valuation allowances as well as other various permanent tax adjustments and state taxes.

During fiscal 2020, our effective income tax rate was impacted due to a tax benefit of permanent tax credits reduced by a valuation allowance placed on equity investments in proportion to a small pre-tax book loss which results in an abnormal tax rate.
The components of the net deferred tax assets were as follows:
April 30, 2022May 1, 2021
Deferred tax assets:
Accrued warranty obligations$7,117 $6,293 
Vacation accrual1,618 1,222 
Deferred maintenance revenue272 398 
Allowance for excess and obsolete inventory2,316 1,776 
Equity compensation276 324 
Allowance for doubtful accounts528 829 
Inventory capitalization1,278 583 
Accrued compensation and benefits1,019 1,707 
Unrealized loss on foreign currency exchange— 85 
Net operating loss carry forwards729 856 
Research and development tax credit carry forwards396 516 
Lease accounting - lease liability1,918 1,572 
Other2,296 1,513 
Total deferred tax assets19,763 17,674 
Valuation allowance(2,452)(1,732)
Net deferred tax assets17,311 15,942 
Deferred tax liabilities:
Property and equipment(1,693)(2,373)
Lease accounting - right of use asset(1,907)(1,580)
Prepaid expenses(428)(337)
Intangible assets— (69)
Unrealized gain on foreign currency exchange(180)— 
Other(59)(49)
Total deferred tax liabilities(4,267)(4,408)
Net deferred tax asset$13,044 $11,534 
The classification of the net deferred tax assets in the accompanying consolidated balance sheets is:
April 30, 2022May 1, 2021
Non-current assets$13,331 $11,944 
Non-current liabilities(287)(410)
$13,044 $11,534 
The summary of changes in the amounts related to unrecognized uncertain tax benefits are:
April 30, 2022May 1, 2021
Balance at beginning of year$548 $582 
Gross increases related to prior period tax positions17 21 
Gross decreases related to prior period tax positions(54)(1)
Gross increases related to current period tax positions116 84 
Lapse of statute of limitations(150)(138)
Balance at end of year$477 $548 
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 occurring in the next 12 months: expiring statutes, audit activity, tax payments, or competent authority proceedings. A statute of limitations relating to $166 of the unrecognized tax benefits (including interest) expires in the next 12 months. The benefit will be recognized if the statute lapses with no further action taken by regulators. Additionally, we recognized the release of $150 in unrecognized tax benefits related to the lapse of a statute of limitations in fiscal 2022.
Interest and penalties incurred associated with uncertain tax positions are included in the "Income tax expense" line item in our consolidated statements of operations. Accrued interest and penalties are included in the related tax liability line item in our consolidated balance sheets of $38 and $38 as of April 30, 2022 and May 1, 2021, respectively.
As of April 30, 2022, we had foreign net operating loss (“NOL”) carryforwards of approximately $3,460 primarily related to our operations in Belgium and Ireland, which have indefinite lives. A deferred tax asset has been recorded for all NOL carryforwards totaling approximately $723. However, due to uncertainty in future taxable income, a valuation allowance totaling approximately $581 has been recorded. If sufficient evidence of our ability to generate future taxable income in the jurisdictions in which we currently maintain a valuation allowance causes us to determine that our deferred tax assets are more likely than not realizable, we would release our valuation allowance, which would result in an income tax benefit being recorded in our consolidated statements of operations.
Additional tax information:
We are subject to U.S. federal income tax as well as income taxes of multiple state and foreign jurisdictions. Fiscal years 2019, 2020 and 2021 remain open to federal tax examinations, and fiscal years 2018, 2019, 2020 and 2021 remain open 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 2011. 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 in our consolidated statement of operations.
As of April 30, 2022, we had no deferred tax liability recognized relating to our investment in foreign subsidiaries where the earnings have been indefinitely reinvested. The Tax Act of 2017 generally eliminates U.S. federal income taxes on dividends from foreign subsidiaries, and, as a result, the accumulated undistributed earnings would be subject only to other taxes, such as withholding taxes and state income taxes, on the distribution of such earnings. No additional withholding or income taxes have been provided for any remaining undistributed foreign earnings not subject to the one-time deemed repatriation tax, as it is our intention for these amounts to continue to be indefinitely reinvested in foreign operations in all of our non-U.S. jurisdictions.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the COVID-19 global pandemic. The CARES Act includes provisions such as: a deferral of the employer portion of certain payroll taxes, refundable payroll tax credits, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, technical corrections to tax depreciation methods for qualified improvement property, and permitting NOL carryforwards incurred in tax years 2018, 2019, and 2020 (our fiscal years 2019, 2020, and 2021) to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. Subsequently to the CARES Act, the Consolidated Appropriations Act (“CAA”) of 2021 was signed into law on December 27, 2020, expanding and extending rules pertaining to payroll tax credits outlined in the CARES Act. Additionally, the American Rescue Plan Act of 2021 (“ARPA”) was signed into law on March 11, 2021, further extending the payroll tax credits with
slight modifications. We continue to evaluate the specific rules, guidance, and procedures allowed by the provisions of the CARES Act, CAA and ARPA. Some of these provisions do not apply to our income tax results; however, we are currently participating in the payment deferral of the employer portion of certain payroll taxes.