Income Taxes (Tables)

12 Months Ended

Apr. 30, 2016

Components of Provision for Income Taxes

The components of income from continuing operations before taxes are as follows:



	Fiscal Year Ended
	April 30, 2016		April 25, 2015		April 26, 2014
Income from continuing operations before taxes
United States	$	270,501	$	235,421	$	230,486
International	31,192		38,897		30,777
Total	$	301,693	$	274,318	$	261,263

Significant components of income tax expense are as follows:



	Fiscal Year Ended
	April 30, 2016			April 25, 2015			April 26, 2014
Current:
Federal	$	105,104		$	73,004		$	66,747
Foreign	11,690			11,764			8,954
State	15,249			9,007			8,697
Total current	132,043			93,775			84,398
Deferred:
Federal	(14,308		)	497			5,225
Foreign	323			44			(260		)
State	(2,049		)	(81		)	568
Total deferred	(16,034		)	460			5,533
Income tax expense	$	116,009		$	94,235		$	89,931

Components of Deferred Tax Assets (Liabilities)

Significant components of Patterson’s deferred tax assets (liabilities) as of April 30, 2016 and April 25, 2015 are as follows:



	April 30, 2016			April 25, 2015
Deferred tax assets:
Capital accumulation plan	$	5,898		$	5,723
Inventory related items	6,776			4,484
Bad debt allowance	2,649			1,380
Stock based compensation expense	9,985			7,995
Interest rate swap	9,749			10,872
Foreign tax credit	9,300			—
Net operating loss carryforwards	363			—
Other	11,979			8,390
Gross deferred tax assets	56,699			38,844
Less: Valuation allowance	(14,007		)	—
Total net deferred tax assets	42,692			38,844
Deferred tax liabilities
LIFO reserve	(21,294		)	(19,173		)
Amortizable intangibles	(156,782		)	(2,310		)
Goodwill	(57,405		)	(52,140		)
Property, plant, equipment	(11,748		)	(4,695		)
Total deferred tax liabilities	(247,229		)	(78,318		)
Deferred net long-term income tax liability	$	(204,537	)	$	(39,474	)

Summary of Effective Income Tax Expense Reconciliation

Income tax expense varies from the amount computed using the U.S. statutory rate. The reasons for this difference and the related tax effects are shown below:



	Fiscal Year Ended
	April 30, 2016			April 25, 2015			April 26, 2014
Tax at U.S. statutory rate	$	105,593		$	96,012		$	91,442
State tax provision, net of federal benefit	7,364			6,479			6,554
Effect of foreign taxes	(1,195		)	(1,806		)	(2,078		)
Permanent differences	(3,693		)	(5,363		)	(4,835		)
Tax on dividends, net of foreign tax credit	12,300			—			—
Other	(4,360		)	(1,087		)	(1,152		)
Income tax expense	$	116,009		$	94,235		$	89,931

Summary of Changes in Gross Amounts of Unrecognized Tax Benefits

A summary of the changes in the gross amounts of unrecognized tax benefits for the years ended April 30, 2016 and April 25, 2015 is shown below:



	April 30, 2016			April 25, 2015
Balance at beginning of period	$	16,661		$	17,256
Additions for tax positions related to the current year	1,794			2,516
Additions for tax positions of prior years	560			44
Reductions for tax positions of prior years	(1,599		)	(502		)
Statute expirations	(3,486		)	(2,653		)
Settlements	(370		)	—
Balance at end of period	$	13,560		$	16,661