Income Taxes (Tables)

12 Months Ended

Apr. 27, 2019

Income (Loss) Before Income Taxes

Income (loss) before income taxes for fiscal 2019, fiscal 2018 and fiscal 2017 are as follows:

	Fiscal 2019		Fiscal 2018			Fiscal 2017
Domestic operations	$	3,082		(137,693	)		47,127
Foreign operations		—		(2	)		(328	)
Total income (loss) before taxes		3,082		(137,695	)		46,799

Income Tax Provisions (Benefits)

Income tax provisions (benefits) for fiscal 2019, fiscal 2018 and fiscal 2017 are as follows:

	Fiscal 2019			Fiscal 2018			Fiscal 2017
Current:
Federal	$	175			19,990			3,722
State		(1,628	)		(1,340	)		(7,480	)
Foreign		—			—			—
Total current		(1,453	)		18,650			(3,758	)
Deferred:
Federal		43			(52,831	)		25,724
State		723			21,966			2,810
Foreign		—			—			—
Total deferred		766			(30,865	)		28,534
Total	$	(687	)		(12,215	)		24,776

Reconciliation between the effective income tax rate and the federal statutory income tax rate is as follows:

Reconciliation Between Effective Income Tax Rate and Federal Statutory Income Tax Rate

	Fiscal 2019			Fiscal 2018			Fiscal 2017
Federal statutory income tax rate		21.0	%		30.3	%		35.0	%
State income taxes, net of federal income tax benefit		21.5			3.0			10.0
Changes to unrecognized tax benefits		(72.0	)		1.8			(5.9	)
Excess executive compensation		(0.9	)		(0.1	)		0.3
Meals and entertainment disallowance		10.0			(0.2	)		0.5
Tax credits		(6.0	)		0.6			—
Changes in valuation allowance		103.2			(26.7	)		(1.2	)
Changes in deferred taxes and payables		(34.7	)		(3.7	)		7.0
Amounts not deductible for tax		5.5			0.1			1.9
State law changes		(72.1	)		1.5			3.1
Impact of Tax Cuts and Jobs Act		—			4.1			—
Goodwill impairment		—			(1.8	)		—
Other, net		2.2			—			2.2
Effective income tax rate		(22.3	)%		8.9	%		52.9	%

Components of Deferred Tax Assets and Liabilities

At April 27, 2019 and April 28, 2018, the significant components of the Company’s deferred taxes consisted of the following:

	April 27, 2019			April 28, 2018
Deferred tax assets:
Accrued liabilities	$	37,288		$	70,891
Insurance liability		4,577			4,830
Loss and credit carryovers		50,413			43,704
Lease transactions		—			93
Pension and post-retirement healthcare		317			340
Stock-based compensation		1,821			2,237
Other		1,669			1,542
Gross deferred tax assets		96,085			123,637
Valuation allowance		(42,503	)		(45,861	)
Net deferred tax assets		53,582			77,776
Deferred tax liabilities:
Prepaid expenses		(2,419	)		(2,779	)
Goodwill and intangible asset amortization		(64,529	)		(65,910	)
Inventory		(930	)		(1,440	)
Investment in Barnes & Noble.com		(51,978	)		(53,304	)
Depreciation		(1,310	)		(6,387	)
Lease transactions		(2,677	)		—
Gross deferred tax liabilities		(123,843	)		(129,820	)
Net deferred tax liabilities	$	(70,261	)	$	(52,044	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2019, fiscal 2018 and fiscal 2017 is as follows:

Balance at April 30, 2016	$	14,572
Additions for tax positions of the current period		337
Additions for tax positions of prior periods		1,644
Reductions due to settlements		—
Reductions for tax positions of prior periods		(7,134	)
Balance at April 29, 2017	$	9,419
Additions for tax positions of the current period		—
Additions for tax positions of prior periods		—
Reductions due to settlements		(22	)
Reductions for tax positions of prior periods		(2,548	)
Balance at April 28, 2018	$	6,849
Additions for tax positions of the current period		—
Additions for tax positions of prior periods		—
Reductions due to settlements		—
Reductions for tax positions of prior periods		(2,473	)
Balance at April 27, 2019	$	4,376