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Income Taxes | 12 Months Ended
--- | ---
May 03, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Significant components of our deferred tax assets and liabilities were as follows:
| May 3, 2014 |  | April 27, 2013
Deferred tax liabilities: |  |  |  |  |
Accelerated tax depreciation | $ | 2.9 |  |  | $ | 4.1 |
Foreign tax withheld | 1.3 |  |  | 0.8 |
Deferred income | 1.3 |  |  | 1.1 |
| 5.5 |  |  | 6.0 |
Deferred tax assets: |  |  |  |  |
Deferred compensation and stock award amortization | 8.4 |  |  | 6.1 |
Inventory valuation differences | 2.2 |  |  | 1.9 |
Property valuation differences | 2.0 |  |  | 0.8 |
Accelerated book amortization | 7.6 |  |  | 12.7 |
Environmental reserves | 1.0 |  |  | 1.1 |
Bad debt reserves | 0.2 |  |  | 0.2 |
Vacation accruals | 0.9 |  |  | 1.0 |
Restructuring accruals | 0.1 |  |  | — |
Foreign investment tax credit | 22.9 |  |  | 21.5 |
Net operating loss carryovers | 8.1 |  |  | 11.8 |
Foreign tax credits | 11.0 |  |  | 7.6 |
Research tax credits | 0.6 |  |  | — |
Other accruals | 1.9 |  |  | 1.2 |
| 66.9 |  |  | 65.9 |
Less valuation allowance | 14.0 |  |  | 42.4 |
Total deferred tax assets | 52.9 |  |  | 23.5 |
Net deferred tax assets | $ | 47.4 |  |  | $ | 17.5 |
Balance sheet classification: |  |  |  |  |
Current asset | $ | 8.7 |  |  | $ | 3.3 |
Non-current asset | 40.0 |  |  | 14.8 |
Current liability | (1.3 | ) |  | (0.6 | )
| $ | 47.4 |  |  | $ | 17.5 |
In addition to the deferred tax assets listed in the table above, the Company had an unrecorded tax benefit of $5.5 million at May 3, 2014, primarily attributable to the difference between the amount of the financial statement expense and the allowable tax deduction for the Company's common stock issued under the Company's stock compensation plans. Although not recognized for financial reporting purposes, this unrecognized tax benefit is available to reduce future income and is incorporated into our federal and state net operating loss carry forwards, which are discussed below. At May 3, 2014, we recorded a deferred tax benefit of $31.7 million related to the release of substantially all of our domestic valuation allowance. The Company evaluated all available positive and negative evidence, including past operating results and the projection of future taxable income and determined it is more likely than not that expected future taxable income will be sufficient to utilize substantially all of our U.S. federal and state net deferred tax assets. We will continue to maintain a valuation allowance of $2.6 million related to certain state and federal net operating loss carryovers until we determine that these deferred tax assets are more likely than not realizable. At May 3, 2014, we had available $25.0 million of federal and $93.0 million of state net operating loss carryforwards (having a tax benefit of $8.1 million and $2.7 million, respectively), $11.0 million of foreign tax credit carryforwards, and $0.6 million of research tax credit carryforwards that may be used to reduce regular federal and state income taxes. If unused, the U.S. federal net operating loss carryforwards will expire in the years 2018 through 2032. The state net operating loss carryforwards will expire in the years 2015 through 2034. The foreign tax credits will expire in the years 2019 through 2024. The research tax credits will expire in the years 2032 through 2034. The tax laws of Malta provide for investment tax credits of 30% of certain qualified expenditures. Unused credits of $22.9 million as of May 3, 2014 can be carried forward indefinitely. We have accumulated investment tax credits in excess of amounts more likely than not to be realized based upon projections of taxable income to be generated within a reasonable time period. Valuation allowances of $9.3 million as of May 3, 2014 have been provided for this excess. We record investment tax credits using the "flow through" method. Components of income before income taxes are as follows:
| Fiscal Year Ended
| May 3, 2014 |  | April 27, 2013 |  | April 28, 2012
Domestic source | $ | 21.0 |  |  | $ | (1.2 | ) |  | $ | (32.4 | )
Foreign source | 54.9 |  |  | 39.1 |  |  | 43.8 |
Income/(loss) before income tax | $ | 75.9 |  |  | $ | 37.9 |  |  | $ | 11.4 |
Income taxes consisted of the following:
| Fiscal Year Ended
| May 3, 2014 |  | April 27, 2013 |  | April 28, 2012
Current |  |  |  |  |  |  |  |
Federal | $ | 0.2 |  |  | $ | — |  |  | $ | — |
Foreign | 8.0 |  |  | 4.6 |  |  | 5.7 |
State | 0.7 |  |  | 0.1 |  |  | (0.5 | )
Subtotal | 8.9 |  |  | 4.7 |  |  | 5.2 |
Deferred |  |  |  |  |
Federal and state | (31.7 | ) |  | — |  |  | 0.1 |
Foreign | 2.5 |  |  | (7.2 | ) |  | (2.1 | )
Subtotal | (29.2 | ) |  | (7.2 | ) |  | (2.0 | )
Total income tax/(benefit) | $ | (20.3 | ) |  | $ | (2.5 | ) |  | $ | 3.2 |
A reconciliation of the consolidated provisions for income taxes from continuing operations to amounts determined by applying the prevailing statutory federal income tax rate to pre-tax earnings is as follows:
| Fiscal Year Ended
| May 3, 2014 |  |  |  | April 27, 2013 |  |  |  | April 28, 2012 |  |
Income tax at statutory rate | $ | 26.5 |  |  | 35.0 | % |  | $ | 13.3 |  |  | 35.0 | % |  | $ | 4.1 |  |  | 35.0 | %
Effect of: |  |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal benefit | 0.4 |  |  | 0.5 | % |  | 0.1 |  |  | 0.3 | % |  | — |  |  | 0.3 | %
Foreign operations with lower statutory rates | (13.2 | ) |  | (17.4 | )% |  | (11.4 | ) |  | (30.1 | )% |  | (10.9 | ) |  | (94.3 | )%
Foreign losses with no tax benefit | 1.0 |  |  | 1.3 | % |  | 1.9 |  |  | 5.0 | % |  | 0.8 |  |  | 7.3 | %
Foreign investment tax credit | 1.6 |  |  | 2.1 | % |  | (7.5 | ) |  | (19.8 | )% |  | (0.8 | ) |  | (6.8 | )%
Change in tax contingency reserve | 0.2 |  |  | 0.3 | % |  | (0.1 | ) |  | (0.1 | )% |  | (0.3 | ) |  | (2.2 | )%
Change in permanent reinvestment assertion | (2.8 | ) |  | (3.7 | )% |  | — |  |  | — | % |  | 9.6 |  |  | 82.7 | %
Change in valuation allowance | (32.6 | ) |  | (43.0 | )% |  | (1.2 | ) |  | (3.3 | )% |  | 0.4 |  |  | 3.4 | %
Other, net | (1.4 | ) |  | (1.8 | )% |  | 0.9 |  |  | 2.4 | % |  | 0.3 |  |  | 2.5 | %
Income tax provision/(benefit) | $ | (20.3 | ) |  | (26.7 | )% |  | $ | (2.5 | ) |  | (6.6 | )% |  | $ | 3.2 |  |  | 27.9 | %
We paid income taxes of $6.2 million in fiscal 2014, $5.9 million in 2013 and $4.0 million in fiscal 2012. No U.S. provision has been made for income taxes on undistributed net income of foreign operations, as we expect them to be indefinitely reinvested within our foreign operations. If the undistributed net income of $198.7 million were distributed as dividends, we would be subject to foreign tax withholdings and incur additional income tax expense of approximately $69.6 million, before available foreign tax credits. It is not practicable to estimate the amount of foreign tax withholdings or foreign tax credits that may be available. As of May 3, 2014, our gross unrecognized tax benefits totaled $0.6 million. After considering the federal impact on the state issues, $0.6 million of this total would favorably affect the effective tax rate if resolved in our favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:
Balance at April 27, 2013 | $ | 0.4 |
Increases for positions related to the prior years | 0.1 |
Increases for positions related to the current year | 0.1 |
Decreases for positions related to the prior years | — |
Lapsing of statutes of limitations | — |
Balance at May 3, 2014 | $ | 0.6 |
The U.S. federal and state statute of limitations remains open for fiscal year ended April 30, 2011. The continuing practice of the Company is to recognize interest and penalties related to income tax matters in the provision for income taxes. We had $0.1 million accrued for interest and no accrual for penalties at May 3, 2014.

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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