Income Taxes (Tables)

12 Months Ended

May 31, 2016

State Income Taxes and Changes in Deferred Tax Assets Valuation Allowance

The difference between the Corporation’s statutory federal income tax rate of 34 percent in fiscal 2016 and 2015, and the effective income tax rate is due primarily to state income taxes and changes in deferred tax assets valuation allowance and are as follows:


	Year ended May 31,
	2016			2015
	(Dollars in thousands)
Income taxes at statutory federal rate	$	637		$	(1,424	)
State income taxes		199			(45	)
State net operating loss		252			(110	)
New Energy Efficient Home Credit		(237	)		(134	)
(Decrease) increase in deferred tax assets valuation allowance		(1,031	)		1,570
Other, net		180			143

Income tax expense	$	—		$	—

Effective tax rate		0	%		0	%

Components of Net Deferred Tax Assets

Components of the net deferred tax assets include:


	May 31,
	2016			2015
	(Dollars in thousands)
Current deferred tax assets
Accrued marketing programs	$	181		$	144
Accrued warranty expense		1,901			1,800
Accrued workers’ compensation		1,011			886
Accrued vacation		346			325
Other		305			522

Gross current deferred tax assets		3,744			3,677

Noncurrent deferred tax assets
Liability for certain post-retirement benefits		1,850			2,017
Accrued warranty expense		987			958
Federal net operating loss carryforward		32,380			33,120
Federal tax credit carryforward		1,787			1,501
State net operating loss carryforward		7,717			8,133
Depreciation		714			668
Other		(171	)		(167	)

Gross noncurrent deferred tax assets		45,264			46,230

Total gross deferred tax assets		49,008			49,907
Valuation allowance		(49,008	)		(49,907	)

Net deferred tax assets	$	—		$	—