Income Taxes (Tables)

12 Months Ended

Apr. 29, 2017

Components of Provision for Income Taxes

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



	Fiscal Year Ended
	April 29, 2017		April 30, 2016		April 25, 2015
Income from continuing operations before taxes
United States	$	217,529	$	270,501	$	235,421
International	33,352		31,192		38,897
Total	$	250,881	$	301,693	$	274,318

Significant components of income tax expense are as follows:



	Fiscal Year Ended
	April 29, 2017			April 30, 2016			April 25, 2015
Current:
Federal	$	72,339		$	105,104		$	73,004
Foreign	9,100			11,690			11,764
State	9,367			15,249			9,007
Total current	90,806			132,043			93,775
Deferred:
Federal	(11,802		)	(14,308		)	497
Foreign	(28		)	323			44
State	(1,883		)	(2,049		)	(81		)
Total deferred	(13,713		)	(16,034		)	460
Income tax expense	$	77,093		$	116,009		$	94,235

Components of Deferred Tax Assets (Liabilities)

Significant components of Patterson’s deferred tax assets (liabilities) as of April 29, 2017 and April 30, 2016 are as follows:



	April 29, 2017			April 30, 2016
Deferred tax assets:
Capital accumulation plan	$	7,676		$	5,898
Inventory related items	6,236			6,776
Bad debt allowance	2,317			2,649
Stock based compensation expense	8,663			9,985
Interest rate swap	8,656			9,749
Foreign tax credit	8,917			9,300
Net operating loss carryforwards	—			363
Other	14,269			11,979
Gross deferred tax assets	56,734			56,699
Less: Valuation allowance	(14,053		)	(14,007		)
Total net deferred tax assets	42,681			42,692
Deferred tax liabilities
LIFO reserve	(25,833		)	(21,294		)
Amortizable intangibles	(133,037		)	(156,782		)
Goodwill	(61,108		)	(57,405		)
Property, plant, equipment	(14,389		)	(11,748		)
Total deferred tax liabilities	(234,367		)	(247,229		)
Deferred net long-term income tax liability	$	(191,686	)	$	(204,537	)

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 29, 2017			April 30, 2016			April 25, 2015
Tax at U.S. statutory rate	$	87,807		$	105,593		$	96,012
State tax provision, net of federal benefit	5,217			7,364			6,479
Effect of foreign taxes	(2,602		)	(1,195		)	(1,806		)
Permanent differences	(6,861		)	(3,693		)	(5,363		)
Tax on dividends, net of foreign tax credit	(2,406		)	12,300			—
Other	(4,062		)	(4,360		)	(1,087		)
Income tax expense	$	77,093		$	116,009		$	94,235

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 29, 2017 and April 30, 2016 is shown below:



	April 29, 2017			April 30, 2016
Balance at beginning of period	$	13,560		$	16,661
Additions for tax positions related to the current year	1,900			1,794
Additions for tax positions of prior years	418			560
Reductions for tax positions of prior years	(194		)	(1,599		)
Statute expirations	(1,145		)	(3,486		)
Settlements	(328		)	(370		)
Balance at end of period	$	14,211		$	13,560