Income Taxes (Tables)

12 Months Ended

Apr. 28, 2018

Components of Provision for Income Taxes

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



	Fiscal Year Ended
	April 28, 2018		April 29, 2017		April 30, 2016
Income from continuing operations before taxes
United States	$	144,278	$	217,529	$	270,501
International	34,985		33,352		31,192
Total	$	179,263	$	250,881	$	301,693

Significant components of income tax expense (benefit) are as follows:



	Fiscal Year Ended
	April 28, 2018			April 29, 2017			April 30, 2016
Current:
Federal	$	5,876		$	72,339		$	105,104
Foreign	11,228			9,100			11,690
State	2,243			9,367			15,249
Total current expense	19,347			90,806			132,043
Deferred:
Federal	(45,177		)	(11,802		)	(14,308		)
Foreign	(743		)	(28		)	323
State	4,862			(1,883		)	(2,049		)
Total deferred benefit	(41,058		)	(13,713		)	(16,034		)
Income tax expense (benefit)	$	(21,711	)	$	77,093		$	116,009

Components of Deferred Tax Assets (Liabilities)

Significant components of Patterson’s deferred tax assets (liabilities) as of April 28, 2018 and April 29, 2017 are as follows:



	April 28, 2018			April 29, 2017
Deferred tax assets:
Capital accumulation plan	$	4,862		$	7,676
Inventory related items	4,407			6,236
Bad debt allowance	1,052			2,317
Stock based compensation expense	6,514			8,663
Interest rate swap	4,712			8,656
Foreign tax credit	8,472			8,917
Other	11,748			14,269
Gross deferred tax assets	41,767			56,734
Less: Valuation allowance	(13,830		)	(14,053		)
Total net deferred tax assets	27,937			42,681
Deferred tax liabilities
LIFO reserve	(19,727		)	(25,833		)
Amortizable intangibles	(84,778		)	(133,037		)
Goodwill	(41,635		)	(61,108		)
Property, plant, equipment	(33,376		)	(14,389		)
Total deferred tax liabilities	(179,516		)	(234,367		)
Deferred net long-term income tax liability	$	(151,579	)	$	(191,686	)

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 28, 2018			April 29, 2017			April 30, 2016
Tax at U.S. statutory rate	$	54,674		$	87,807		$	105,593
State tax provision, net of federal benefit	4,650			5,217			7,364
Effect of foreign taxes	(186		)	(2,602		)	(1,195		)
Permanent differences	(4,219		)	(6,861		)	(3,693		)
Tax on dividends, net of foreign tax credit	—			(2,406		)	12,300
Tax reform	(76,648		)	—			—
Other	18			(4,062		)	(4,360		)
Income tax expense (benefit)	$	(21,711	)	$	77,093		$	116,009

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 28, 2018 and April 29, 2017 is shown below:



	April 28, 2018			April 29, 2017
Balance at beginning of period	$	14,211		$	13,560
Additions for tax positions related to the current year	1,713			1,900
Additions for tax positions of prior years	232			418
Reductions for tax positions of prior years	(475		)	(194		)
Statute expirations	(1,284		)	(1,145		)
Settlements	(170		)	(328		)
Balance at end of period	$	14,227		$	14,211