Income Taxes (Tables)

9 Months Ended

Jan. 30, 2022

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 nine-month periods ending January 30, 2022, and January 31, 2021:

	January 30,			January 31,
	2022			2021
U.S. federal income tax rate		21.0	%		21.0	%
U.S. valuation allowance		(26.9	)		89.9
U.S. income tax law change - Global Intangible Low Taxed Income Tax ("GILTI")		37.4			(41.3	)
Withholding taxes associated with foreign jurisdictions		9.8			7.5
Foreign income tax rate differential		5.1			8.9
Tax effects of deductible foreign exchange rate losses		(1.0	)		(6.7	)
Other		3.0			0.8
		48.4	%		80.1	%

Summary of Valuation Allowances Against Net Deferred Income Taxes

Based on our assessments as of January 30, 2022, January 31, 2021, and May 2, 2021, valuation allowances against our U.S. net deferred income taxes pertain to the following:

(dollars in thousands)	January 30, 2022		January 31, 2021		May 2, 2021
U.S. federal and state net deferred income tax assets	$	7,802		8,544		9,344
U.S. capital loss carryforward		2,330		2,281		2,330
	$	10,132		10,825		11,674

Summary of Taxes Paid (Refunded)

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

	Nine Months Ended
(dollars in thousands)	January 30, 2022		January 31, 2021
United States Federal - Alternative Minimum Tax (AMT) credit refunds (1)	$	—	$	(1,509	)
United States Transition Tax Payment		266		227
China - Income Taxes		2,036		867
China - Withholding Taxes Associated with Earnings and Profits Distribution to U.S. Parent		487		798
Canada - Income Taxes		256		809
	$	3,045	$	1,192

(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 refunds totaling $1.5 million in two separate installments totaling $746,000 and $764,000 during the first and second quarters of fiscal 2021, respectively.