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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, 2023April 30, 2022May 1, 2021
Domestic$10,125 $(2,696)$10,413 
Foreign3,132 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, 2023April 30, 2022May 1, 2021
Current:
Federal$6,321 $644 $507 
State1,381 452 422 
Foreign2,273 975 891 
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, 2023April 30, 2022May 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, net288 (179)579 
Change in valuation allowances2,078 609 402 
GILTI6 (14)(156)
Base Erosion Anti-Abuse Tax (BEAT)87 12 (285)
Foreign-Derived Intangible Income (FDII)(128)(5)(84)
Stock compensation262 150 355 
Meals and entertainment149 67 49 
Goodwill Impairment551 — — 
State taxes, net of federal benefit731 139 494 
Effect of Foreign Tax Rates different than Statutory417 (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, 2023April 30, 2022
Deferred tax assets:
Accrued warranty obligations$8,088 $7,117 
Vacation accrual1,732 1,618 
Deferred maintenance revenue484 272 
Allowance for excess and obsolete inventory2,779 2,316 
Equity compensation255 276 
Allowance for credit losses accounts928 528 
Inventory capitalization1,339 1,278 
Accrued compensation and benefits395 1,019 
Unrealized loss on foreign currency exchange206 — 
Net operating loss carry forwards1,024 729 
Outside basis difference in equity method investments3,819 1,861 
Section 174 Capitalization5,225 — 
Research and development tax credit carry forwards210 396 
Lease accounting - lease liability1,426 1,918 
Other929 435 
Total deferred tax assets28,839 19,763 
Valuation allowance(4,900)(2,452)
Net deferred tax assets23,939 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, 2023April 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, 2023April 30, 2022
Balance at beginning of year$477 $548 
Gross increases related to prior period tax positions12 17 
Gross decreases related to prior period tax positions(56)(54)
Gross increases related to current period tax positions124 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.