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Note 9 - Income Taxes
 9 Months Ended
Jan. 29, 2022
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 nine months ended January 29, 2022 reflected effective tax rates of 32.2 percent and 9.4 percent, respectively, as compared to effective tax rates of 82.0 percent and 21.3 percent tax for the three and nine months ended January 30, 2021. The difference in tax rates is primarily driven by an increase in estimated permanent tax costs such as BEAT and GILTI proportionate to a decrease in estimated pre-tax earnings in the third quarter of fiscal 2022 compared to no change in the estimated tax rate from the second quarter to the third quarter of fiscal 2021. Additionally, a return to provision expense was recorded for the third quarter of fiscal 2022 which impacted the overall effective rate compared to a return to provision benefit recorded in fiscal 2021.

 

We operate both domestically and internationally and, as of January 29, 2022, undistributed earnings of our foreign subsidiaries were considered to be reinvested indefinitely. Additionally, as of  January 29, 2022, we had $478 of unrecognized tax benefits which would reduce our effective tax rate if recognized.