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INCOME TAXES
9 Months Ended
Feb. 01, 2014
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
 
At February 1, 2014 and April 27, 2013, we had a total valuation allowance against our deferred tax assets of $40,895 and $42,436, respectively.  In the U.S., as of February 1, 2014 and April 27, 2013, the company had a full valuation allowance against its domestic federal and state net deferred tax assets of $33,670 and $35,200, respectively.

In accordance with ASC No. 740, “Income Taxes,” a valuation allowance is required to be recorded when it is more likely than not that deferred tax assets will not be realized.  Future realization depends on the existence of sufficient taxable income within the carry-forward period available under the tax laws.  Sources of future taxable income include future reversals of taxable temporary differences, future taxable income exclusive of reversing taxable differences, taxable income in carry-back years and tax planning strategies.  These sources of positive evidence of realizability must be weighed against negative evidence, such as cumulative losses in recent years.
 
In forming a judgment about the future realization of our deferred tax assets, we considered both the positive and negative evidence of realizability and gave significant weight to the negative evidence from our recent cumulative loss in the U.S. Each reporting period, the Company considers all available evidence, both positive and negative, to determine whether based on the weight of that evidence, a valuation allowance for deferred tax assets is needed. The Company has experienced cumulative domestic losses in recent years, which represents significant negative evidence. However, the Company has recently launched major automotive and appliance programs in the U.S. which have generated, and are expected to continue to generate, pre-tax income. In evaluating this positive evidence, the Company considered its ability to accurately assess future demand for its products, general economic climate and eventual product acceptance, given the limited experience with the launches.
The Company has concluded based on the weight of the available evidence that a full valuation allowance continues to be appropriate at February 1, 2014. However, continued sustained improvement in the Company’s domestic operating results could result in the reversal of some or all of the Company’s domestic valuation allowance in subsequent quarters.
 
The Company recognized an income tax provision of $1,431 and $855 for the three months ended February 1, 2014 and January 26, 2013, respectively. The Company's effective tax rate was 8.9% and 20.4% for the three months ended February 1, 2014 and January 26, 2013, respectively. The Company recognized an income tax provision of $4,169 and $4,519 for the nine months ended February 1, 2014 and January 26, 2013, respectively. The Company's effective tax rate was 8.0% and 12.9% for the nine months ended February 1, 2014 and January 26, 2013, respectively. The income tax provision for both the three and nine months ended February 1, 2014 and January 26, 2013 is lower than the U.S. statutory rate primarily due to foreign investment tax credits, foreign operations with lower statutory rates and adjustments in valuation allowances.

We recognize interest and penalties accrued related to the unrecognized tax benefits in the provision for income taxes.  We had approximately $78 accrued at February 1, 2014 for the payment of interest and penalties.  The total unrecognized tax benefit as of February 1, 2014 was $532. The accrued amount increased $139 in the current fiscal year.
  
The Company and all of its domestic subsidiaries file income tax returns in the U.S. federal jurisdiction and various states.  Our foreign subsidiaries file income tax returns in certain foreign jurisdictions since they have operations outside the U.S.  The Company and its subsidiaries are generally no longer subject to U.S. federal, state and local examinations by tax authorities for all years except fiscal 2013, 2012 and 2011.