Income Taxes

12 Months Ended

May 28, 2022

Income Taxes [Abstract]

Income Taxes

Note 17 - Income Taxes

Income tax expense (benefit) consisted of the following:

Fiscal year ended

May 28, 2022

May 29, 2021

May 30, 2020

Current:

Federal

$

24,228

$

(35,090)

$

(6,750)

State

3,670

730

(1,800)

27,898

(34,360)

(8,550)

Deferred:

Federal

2,716

21,658

8,872

State

2,960

693

1,409

5,676

22,351

10,281

$

33,574

$

(12,009)

$

1,731

Significant components of the Company’s deferred tax liabilities and assets were as follows:

May 28, 2022

May 29, 2021

Deferred tax liabilities:

Property, plant and equipment

$

100,250

$

82,508

Inventories

31,987

31,501

Investment in affiliates

65

7,670

Other

5,713

5,648

Total deferred tax liabilities

138,015

127,327

Deferred tax assets:

Accrued expenses

4,041

3,728

State operating loss carryforwards

470

3,416

Other comprehensive income

866

497

Other

4,442

5,278

Total deferred tax assets

9,819

12,919

Net deferred tax liabilities

$

128,196

$

114,408

The differences between income tax expense (benefit) at the Company’s effective income tax rate and income tax expense at the

statutory federal income tax rate were as follows:

Fiscal year end

May 28, 2022

May 29, 2021

May 30, 2020

Statutory federal income tax

$

34,907

$

(2,087)

$

4,226

State income taxes, net

5,237

1,124

(309)

Domestic manufacturers deduction

—

3,566

684

Enacted net operating loss carryback provision

—

(16,014)

(3,041)

Tax exempt interest income

(9)

(50)

(111)

Reversal of outside basis in equity investment Red River

(7,310)

—

—

Non-taxable remeasurement gain Red River

(955)

—

—

Other, net

1,704

1,452

282

$

33,574

$

(12,009)

$

1,731

Federal and state income taxes of $

2.2

 million, $

995

 thousand, and $

32

 thousand were paid in fiscal years 2022, 2021, and 2020,

respectively. Federal and state income taxes of $

373

 thousand, $

2.6

 million, and $

8.4

 million were refunded in fiscal years 2022,

2021, and 2020, respectively.

In fiscal 2022, the Company recognized $

467

 thousand in interest and penalties. As of May 28, 2022, the Company had

no

accrued interest and penalties related to uncertain tax positions.

As of May 28, 2022, we had completed the audit by the Internal Revenue Service (IRS) for the fiscal years 2013 through 2015.

Final audit adjustments did not result in a material change to the consolidated financial statements. From management’s

perspective, the years are closed and are only open with respect to any net operating loss carryback to those years. Although we

are subject to income tax in many jurisdictions within the U.S., we are currently not under audit by any state and local tax

authorities. Tax periods for all years beginning with fiscal year 2019 remain open to examination by federal and state taxing

jurisdictions to which we are subject.