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

Note 10 - Income Taxes (Tables)

12 Months Ended

Apr. 03, 2022

	Fiscal year ended April 3, 2022
	Current			Deferred		Total
Income tax expense on current year income:
Federal	$	542		$	1,398	$	1,940
State		194			328		522
Foreign		11			-		11
Total income tax expense on current year income		747			1,726		2,473
Income tax expense (benefit) - discrete items:
Reserve for unrecognized tax benefits		59			-		59
Adjustment to prior year provision		(41	)		-		(41	)
Net excess tax benefit related to stock-based compensation		(83	)		-		(83	)
Income tax benefit - discrete items		(65	)		-		(65	)
Total income tax expense	$	682		$	1,726	$	2,408

	Fiscal year ended March 28, 2021
	Current			Deferred			Total
Income tax expense on current year income:
Federal	$	1,631		$	(216	)	$	1,415
State		479			(51	)		428
Foreign		10			-			10
Total income tax expense on current year income		2,120			(267	)		1,853
Income tax expense (benefit) - discrete items:
Reserve for unrecognized tax benefits		(145	)		-			(145	)
Adjustment to prior year provision		(54	)		-			(54	)
Net excess tax benefit related to stock-based compensation		(12	)		-			(12	)
Income tax benefit - discrete items		(211	)		-			(211	)
Total income tax expense	$	1,909		$	(267	)	$	1,642

	April 3, 2022			March 28, 2021
Deferred tax assets:
Employee wage and benefit accruals	$	495		$	532
Accounts receivable and inventory reserves		414			234
Operating lease liabilities		654			1,100
Intangible assets		322			172
State net operating loss carryforwards		755			736
Accrued interest and penalty on unrecognized tax liabilities		43			28
Stock-based compensation		289			195
Total gross deferred tax assets		2,972			2,997
Less valuation allowance		(755	)		(736	)
Deferred tax assets after valuation allowance		2,217			2,261

Deferred tax liabilities:
Prepaid expenses		(607	)		(452	)
Operating lease right of use assets		(600	)		(1,015	)
Intangible assets		(1,725	)		-
Property, plant and equipment		(305	)		(88	)
Total deferred tax liabilities		(3,237	)		(1,555	)
Net deferred income tax (liabilities) assets	$	(1,020	)	$	706

	2022		2021
Balance at beginning of period	$	630	$	721
Additions related to current year positions		59		88
Additions related to prior year positions		50		56
Revaluations due to change in enacted tax rates		-		-
Reductions for tax positions of prior years		-		-
Reductions due to lapses of the statute of limitations		-		(341	)
Additions pursuant to judgements and settlements		-		106
Balance at end of period	$	739	$	630

	2022			2021
Federal statutory rate		21	%		21	%
Tax expense at federal statutory rate	$	2,588		$	1,622
State income taxes, net of Federal income tax benefit		413			338
Tax credits		(136	)		(135	)
Discrete items		(65	)		(211	)
Tax effect of book income not includible for tax purposes		(486	)		-
Other - net, including foreign		94			28
Income tax expense	$	2,408		$	1,642