XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.23.2

Income Taxes | 12 Months Ended
--- | ---
Apr. 29, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following tables reflect the significant components of our income tax provision. The pretax income attributable to domestic and foreign operations was as follows:
| Year Ended
| April 29, 2023 |  | April 30, 2022 |  | May 1, 2021
Domestic | $ | 10,125 |  |  | $ | (2,696) |  |  | $ | 10,413 |
Foreign | 3,132 |  |  | 3,804 |  |  | 3,647 |
Income before income taxes | $ | 13,257 |  |  | $ | 1,108 |  |  | $ | 14,060 |
Income tax expense (benefit) consisted of the following:
| Year Ended
| April 29, 2023 |  | April 30, 2022 |  | May 1, 2021
Current: |  |  |  |  |
Federal | $ | 6,321 |  |  | $ | 644 |  |  | $ | 507 |
State | 1,381 |  |  | 452 |  |  | 422 |
Foreign | 2,273 |  |  | 975 |  |  | 891 |
Deferred: |  |  |  |  |
Federal | (3,025) |  |  | (1,020) |  |  | 1,216 |
State | (456) |  |  | (476) |  |  | 59 |
Foreign | (39) |  |  | (59) |  |  | 39 |
| $ | 6,455 |  |  | $ | 516 |  |  | $ | 3,134 |
The reconciliation of the provision (benefit) for income taxes and the amount computed by applying the federal statutory rate to income before income taxes is as follows:
| Year Ended
| April 29, 2023 |  | April 30, 2022 |  | May 1, 2021
Computed income tax expense at federal statutory rates | $ | 2,784 |  |  | $ | 233 |  |  | $ | 2,953 |
Change in uncertain tax positions | (86) |  |  | (71) |  |  | (34) |
Research and development tax credit | (684) |  |  | (382) |  |  | (1,047) |
Other, net | 288 |  |  | (179) |  |  | 579 |
Change in valuation allowances | 2,078 |  |  | 609 |  |  | 402 |
GILTI | 6 |  |  | (14) |  |  | (156) |
Base Erosion Anti-Abuse Tax (BEAT) | 87 |  |  | 12 |  |  | (285) |
Foreign-Derived Intangible Income (FDII) | (128) |  |  | (5) |  |  | (84) |
Stock compensation | 262 |  |  | 150 |  |  | 355 |
Meals and entertainment | 149 |  |  | 67 |  |  | 49 |
Goodwill Impairment | 551 |  |  | — |  |  | — |
State taxes, net of federal benefit | 731 |  |  | 139 |  |  | 494 |
Effect of Foreign Tax Rates different than Statutory | 417 |  |  | (43) |  |  | (92) |
| $ | 6,455 |  |  | $ | 516 |  |  | $ | 3,134 |
The effective income tax rate for fiscal 2023 was impacted due to valuation allowances on equity investments and on foreign net operating losses in Ireland, goodwill impairment, state taxes, a mix of taxes in foreign countries where the tax rate is higher than the United States, as well as prior year provision to return adjustments reduced in part by tax benefits from permanent tax credits. During fiscal 2022, our effective income tax rate 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. The components of the net deferred tax assets were as follows:
| April 29, 2023 |  | April 30, 2022
Deferred tax assets: |  |  |
Accrued warranty obligations | $ | 8,088 |  |  | $ | 7,117 |
Vacation accrual | 1,732 |  |  | 1,618 |
Deferred maintenance revenue | 484 |  |  | 272 |
Allowance for excess and obsolete inventory | 2,779 |  |  | 2,316 |
Equity compensation | 255 |  |  | 276 |
Allowance for credit losses accounts | 928 |  |  | 528 |
Inventory capitalization | 1,339 |  |  | 1,278 |
Accrued compensation and benefits | 395 |  |  | 1,019 |
Unrealized loss on foreign currency exchange | 206 |  |  | — |
Net operating loss carry forwards | 1,024 |  |  | 729 |
Outside basis difference in equity method investments | 3,819 |  |  | 1,861 |
Section 174 Capitalization | 5,225 |  |  | — |
Research and development tax credit carry forwards | 210 |  |  | 396 |
Lease accounting - lease liability | 1,426 |  |  | 1,918 |
Other | 929 |  |  | 435 |
Total deferred tax assets | 28,839 |  |  | 19,763 |
Valuation allowance | (4,900) |  |  | (2,452) |
Net deferred tax assets | 23,939 |  |  | 17,311 |
Deferred tax liabilities: |  |  |
Property and equipment | (5,292) |  |  | (1,693) |
Lease accounting - right of use asset | (1,411) |  |  | (1,907) |
Prepaid expenses | (471) |  |  | (428) |
Unrealized gain on foreign currency exchange | — |  |  | (180) |
Other | (93) |  |  | (59) |
Total deferred tax liabilities | (7,267) |  |  | (4,267) |
Net deferred tax asset | $ | 16,672 |  |  | $ | 13,044 |
The classification of the net deferred tax assets in the accompanying consolidated balance sheets is:
| April 29, 2023 |  | April 30, 2022
Non-current assets | $ | 16,867 |  |  | $ | 13,331 |
Non-current liabilities | (195) |  |  | (287) |
| $ | 16,672 |  |  | $ | 13,044 |
The summary of changes in the amounts related to unrecognized uncertain tax benefits are:
| April 29, 2023 |  | April 30, 2022
Balance at beginning of year | $ | 477 |  |  | $ | 548 |
Gross increases related to prior period tax positions | 12 |  |  | 17 |
Gross decreases related to prior period tax positions | (56) |  |  | (54) |
Gross increases related to current period tax positions | 124 |  |  | 116 |
Lapse of statute of limitations | (165) |  |  | (150) |
Balance at end of year | $ | 392 |  |  | $ | 477 |
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 $171 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 $165 in unrecognized tax benefits related to the lapse of a statute of limitations in fiscal 2023. 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 $28 and $38 as of April 29, 2023 and April 30, 2022, respectively. As of April 29, 2023, we had foreign net operating loss (“NOL”) carryforwards of approximately $5,727 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 $1,018. However, due to uncertainty in future taxable income, a valuation allowance has been recorded for the full amount of the asset. 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 United States federal income tax as well as income taxes of multiple state and foreign jurisdictions. Fiscal years 2020, 2021 and 2022 remain open to federal tax examinations, and fiscal years 2019, 2020, 2021 and 2022 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 2012. 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 29, 2023, 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 United States 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-United States jurisdictions.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration