Income Taxes (Tables)

6 Months Ended

Oct. 31, 2021

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 six-month periods ending October 31, 2021, and November 1, 2020:

	October 31,			November 1,
	2021			2020
U.S. federal income tax rate		21.0	%		21.0	%
U.S. valuation allowance		(4.5	)		141.6
U.S. income tax law change		—			(65.1	)
Withholding taxes associated with foreign jurisdictions		6.1			8.4
Foreign income tax rate differential		3.9			6.6
Global Intangible Low Taxed Income Tax ("GILTI")		3.3			—
Tax effects of deductible foreign exchange rate losses		(0.4	)		(4.0	)
Other		0.9			1.0
		30.3	%		109.5	%

Summary of Valuation Allowances Against Net Deferred Income Taxes

Based on our assessments as of October 31, 2021, November 1, 2020, and May 2, 2021, valuation allowances against our U.S. net deferred income taxes pertain to the following:

(dollars in thousands)	October 31, 2021		November 1, 2020		May 2, 2021
U.S. federal and state net deferred income tax assets	$	9,155		8,543		9,344
U.S. capital loss carryforward		2,330		2,281		2,330
	$	11,485		10,824		11,674

Summary of Taxes Paid (Refunded)

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

	Six Months Ended
(dollars in thousands)	October 31, 2021		November 1, 2020
United States Federal - Alternative Minimum Tax (AMT) credit refunds (1)	$	—	$	(1,509	)
United States Transition Tax Payment		266		227
China - Income Taxes		921		349
China - Withholding Taxes Associated with Earnings and Profits Distribution to U.S. Parent		487		—
Canada - Income Taxes		427		377
	$	2,101	$	(556	)

(1)

In accordance with the provisions of the TCJA, we elected to treat our prior AMT credit carryforward balance of $1.5 million as refundable. We received our $1.5 million refundable balance in two separate installments totaling $746,000 and $764,000 during the first and second quarters of fiscal 2021, respectively.