Income Taxes

12 Months Ended

Mar. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes generally represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. The following details the provision for income taxes for fiscal years 2024, 2023 and 2022 (in thousands):

	2024		2023		2022
Current
Federal	$	36,023	$	51,190	$	7,271
State	8,094		12,709		8,768
Foreign	218		50		—
	44,335		63,949		16,039
Deferred
Federal	(2,884)		2,705		(1,257)
State	(98)		(732)		(535)
Foreign	(78)		—		—
	(3,060)		1,973		(1,792)
	$	41,275	$	65,922	$	14,247

A reconciliation of income taxes computed by applying the expected federal statutory income tax rate of 21% for fiscal years 2024, 2023 and 2022 to income before income taxes reported in the Consolidated Statements of Comprehensive Income is as follows (in thousands):

	2024		2023		2022
Federal income tax at statutory rate	$	41,828	$	64,420	$	44,518
State income taxes, net of federal benefit	7,984		12,172		8,075
Tax credits	(6,662)		(10,847)		(37,488)
Other	(1,875)		177		(858)
	$	41,275	$	65,922	$	14,247

Net deferred tax assets and liabilities were as follows (in thousands):

	March 30, 2024		April 1, 2023
Net deferred tax (liabilities) assets
Goodwill	$	(17,080)	$	(16,041)
Property, plant and equipment	(14,678)		(16,763)
Warranty reserves	7,668		7,355
Lease - Operating lease liability	7,446		6,323
Lease - Right of use assets	(7,108)		(6,050)
Research and experimentation expenditures	5,940		2,712
Salaries and wages	3,176		3,675
Inventory	2,913		2,151
Accrued volume rebates	2,868		2,713
Other	4,280		6,344
	$	(4,575)	$	(7,581)

The effective income tax rate for the current year was positively impacted by the recognition of tax credits. Of the total tax credits, $4.2 million related to the sale of energy efficient homes and Energy Star credits available under the Internal Revenue Code §45L and $2.4 million related to the Research and Development, Solar, and Work Opportunity Tax Credits. The §45L tax credit was initially established under the Federal Energy Policy Act of 2005 and was extended through December 31, 2032 by the Inflation Reduction Act of 2022.

We recorded an insignificant amount of unrecognized tax benefits during fiscal years 2024, 2023 and 2022, and there would be an insignificant effect on the effective tax rate if all unrecognized tax benefits were recognized. We classify interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of unrecognized tax benefit related to any particular tax position is not anticipated to change significantly within the next 12 months. We believe that our income tax filing positions and deductions will be sustained on audit and we do not anticipate any adjustments that will result in a material change to our financial position.

We periodically evaluate the deferred tax assets based on the requirements established in ASC 740, which requires the recording of a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of the need for, or amount of, any valuation allowance involves significant management judgment and is based upon the evaluation of both positive and negative evidence, including management projections of anticipated taxable income. At March 30, 2024, we had state net operating loss carryforwards totaling $3.5 million, which begin to expire in 2038, and no associated valuation allowance. We have evaluated our historical profits earned and forecasted taxable income and determined that all of the deferred tax assets would be utilized in future periods. Ultimate realization of the deferred tax assets depends on our ability to continue to earn profits, as we have historically, and to meet these forecasts in future periods.

Income tax returns are filed in the U.S. federal jurisdiction in several state jurisdictions, and in Mexico. In general, we are no longer subject to examination by the IRS or state and local income tax examinations by tax authorities for years before fiscal year 2020; however, we have filed refund claims for fiscal 2018 and 2020 which are currently being processed by the IRS.