Note 8 - Income Taxes

12 Months Ended

Apr. 27, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8. INCOME TAXES

The provision for income taxes consisted of the following:

	(In thousands)
	Fiscal		Fiscal			Fiscal
	2024		2023			2022
Current	$	49,683	$	48,287		$	42,555
Deferred		3,433		(4,009	)		6,529
Total	$	53,116	$	44,278		$	49,084

Deferred taxes are recorded to give recognition to temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements. Valuation allowances are established to reduce the carrying amounts of deferred tax assets when it is deemed more likely than not that the benefit of deferred tax assets will not be realized. Deferred tax assets and liabilities at April 27, 2024 and April 29, 2023 consisted of the following:     

	(In thousands)
	2024		2023
Deferred tax assets:
Accrued expenses and other	$	3,923	$	4,671
Inventory and amortizable assets		575		545
Total deferred tax assets		4,498		5,216
Deferred tax liabilities:
Property		25,002		23,715
Intangibles and other		2,743		1,315
Total deferred tax liabilities		27,745		25,030
Deferred tax liabilities, net	$	23,247	$	19,814

The reconciliation of the statutory federal income tax rate to our effective tax rate is as follows:

	Fiscal			Fiscal			Fiscal
	2024			2023			2022
Statutory federal income tax rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal benefit		2.8			2.9			2.9
Other differences		( 0.7	)		(0.2	)		(0.3	)
Effective income tax rate		23.1	%		23.7	%		23.6	%

At April 27, 2024, the gross amount of unrecognized tax benefits was $2.1 million. During Fiscal 2024, the income tax expense recognized related to uncertain tax positions was immaterial. If the Company were to prevail on all uncertain tax positions, the net effect would be to reduce our income tax expense by approximately $1.7 million. A reconciliation of the changes in the gross amount of unrecognized tax benefits, which amounts are included in other liabilities in the accompanying consolidated balance sheets, is as follows:

	(In thousands)
	2024			2023			2022
Beginning balance	$	2,096		$	2,079		$	2,055
Increases due to current period tax positions		60			75			114
Decreases due to lapse of statute of limitations and audit resolutions		(26	)		(58	)		(90	)
Ending balance	$	2,130		$	2,096		$	2,079

Accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. At April 27, 2024, unrecognized tax benefits included accrued interest of $0.3 million. During Fiscal 2024, the interest and penalties related to uncertain tax positions recognized in income tax expense was immaterial.

Annual income tax returns are filed in the United States and in various state and local jurisdictions. A number of years may elapse before an uncertain tax position, for which the Company has unrecognized tax benefits, are resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that unrecognized tax benefits reflect the most probable outcome. The Company adjusts these unrecognized tax benefits, as well as the related interest, in light of changing facts and circumstances. The resolution of any particular uncertain tax position could require the use of cash and an adjustment to our provision for income taxes in the period of resolution. Federal income tax returns for years subsequent to Fiscal 2018 are subject to examination. Generally, the income tax returns for the various state jurisdictions are subject to examination for years ending after Fiscal 2017.