Income Taxes (Tables)

3 Months Ended

Aug. 01, 2021

Income Tax Disclosure [Abstract]

Summary of Differences in Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate

The following schedule summarizes the principal differences between income tax expense at the U.S. federal income tax rate and the effective income tax rate reflected in the consolidated financial statements for the three-month periods ending August 1, 2021, and August 2, 2020:

	August 1,			August 2,
	2021			2020
U.S. federal income tax rate		21.0	%		21.0	%
U.S. valuation allowance		(3.9	)		474.4
U.S. income tax law change		—			(232.5	)
Withholding taxes associated with foreign jurisdictions		6.2			10.1
Foreign income tax rate differential		1.6			9.1
Global Intangible Low Taxed Income Tax ("GILTI")		3.4			—
Other		0.4			1.6
		28.7	%		283.7	%

Summary of Valuation Allowances Against Net Deferred Income Taxes

Based on our assessments as of August 1, 2021, August 2, 2020, and May 2, 2021, valuation allowances against our net deferred income taxes pertain to the following:

(dollars in thousands)	August 1, 2021		August 2, 2020		May 2, 2021
U.S. federal and state net deferred income tax assets	$	9,221		7,830		9,344
U.S. capital loss carryforward		2,330		2,281		2,330
	$	11,551		10,111		11,674

Summary of Taxes Paid (Refunded)

The following table sets forth taxes paid (refunded) by jurisdiction:

			Three Months Ended
	August 1,			August 2,
(dollars in thousands)	2021			2020
United States Federal - Alternative Minimum Tax    (AMT) credit refunds (1)	$	—		$	(745	)
China		1,408			349
Canada		280			405
	$	1,688		$	9

(1) In accordance with the provisions of the TCJA, corporate taxpayers were eligible to treat prior AMT credit carryforwards as refundable. Accordingly, we elected to treat our prior AMT credit carryforward balance of $1.5 million as refundable, and as

a result, 50% of the $1.5 million refundable balance was received during the first quarter of fiscal 2021, with the remaining balance expected to be received in fiscal 2022. In accordance with the provisions of the U.S. federal Coronavirus Aid, Relief, and Economic Security (CARES) Act (2020), 100% of AMT credit carryforwards for years beginning in the 2019 tax year were immediately refundable. Accordingly, we claimed credit for the remaining 50% installment of our refundable AMT credit carryforward in May 2020. We received our remaining 50% installment, plus interest, totaling $764,000 during the second quarter of fiscal 2021.