Crown Crafts, Inc. Annual report pursuant to Section 13 and 15(d)

Note 9 - Income Taxes (Tables)

12 Months Ended

Mar. 29, 2020

	Fiscal year ended March 29, 2020
	Current			Deferred		Total
Income tax expense on current year income:
Federal	$	1,385		$	79	$	1,464
State		381			6		387
Foreign		10			-		10
Total income tax expense on current year income		1,776			85		1,861
Income tax expense (benefit) - discrete items:
Reserve for unrecognized tax benefits		(386	)		-		(386	)
Adjustment to prior year provision		(273	)		-		(273	)
Net excess tax benefit related to stock-based compensation		5			-		5
Income tax benefit - discrete items		(654	)		-		(654	)
Total income tax expense	$	1,122		$	85	$	1,207

	Fiscal year ended March 31, 2019
	Current		Deferred			Total
Income tax expense on current year income:
Federal	$	1,282	$	61		$	1,343
State		287		18			305
Foreign		11		-			11
Total income tax expense on current year income		1,580		79			1,659
Income tax expense (benefit) - discrete items:
Reserve for unrecognized tax benefits		87		-			87
Adjustment to prior year provision		85		(71	)		14
Net excess tax shortfall related to stock-based compensation		12		-			12
Income tax expense (benefit) - discrete items		184		(71	)		113
Total income tax expense	$	1,764	$	8		$	1,772

	March 29, 2020			March 31, 2019
Deferred tax assets:
Employee wage and benefit accruals	$	428		$	441
Accounts receivable and inventory reserves		188			129
Deferred rent		-			25
Operating lease liabilities		1,275			-
Intangible assets		-			184
State net operating loss carryforwards		713			710
Accrued interest and penalty on unrecognized tax liabilities		43			55
Stock-based compensation		165			148
Total gross deferred tax assets		2,812			1,692
Less valuation allowance		(713	)		(710	)
Deferred tax assets after valuation allowance		2,099			982

Deferred tax liabilities:
Prepaid expenses		(191	)		(175	)
Operating lease right of use assets		(1,212	)		-
Intangible assets		(18	)		-
Property, plant and equipment		(239	)		(283	)
Total deferred tax liabilities		(1,660	)		(458	)
Net deferred income tax assets	$	439		$	524

	Fiscal Year
	2020			2019
Balance at beginning of period	$	1,194		$	1,017
Additions related to current year positions		58			87
Additions related to prior year positions		76			90
Revaluations due to change in enacted tax rates		-			-
Reductions for tax positions of prior years		-			-
Reductions due to lapses of the statute of limitations		(607	)		-
Payments pursuant to judgements and settlements		-			-
Balance at end of period	$	721		$	1,194

	2020			2019
Federal statutory rate		21	%		21	%
Tax expense at federal statutory rate	$	1,631		$	1,426
State income taxes, net of Federal income tax benefit		306			241
Tax credits		(85	)		(11	)
Discrete items		(654	)		113
Other - net, including foreign		9			3
Income tax expense	$	1,207		$	1,772