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

Note 11 - Income Taxes (Tables)

12 Months Ended

Apr. 02, 2023

	Fiscal year ended April 2, 2023
	Current			Deferred			Total
Income tax expense (benefit) on current year income:
Federal	$	1,540		$	(169	)	$	1,371
State		381			(36	)		345
Foreign		10			-			10
Total income tax expense (benefit) on current year income		1,931			(205	)		1,726
Income tax expense (benefit) - discrete items:
Reserve for unrecognized tax benefits		(7	)		-			(7	)
Adjustment to prior year provision		51			-			51
Net tax shortfall related to stock-based compensation		6			-			6
Income tax expense - discrete items		50			-			50
Total income tax expense (benefit)	$	1,981		$	(205	)	$	1,776

	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

	April 2, 2023			April 3, 2022
Deferred tax assets:
Employee wage and benefit accruals	$	186		$	495
Accounts receivable and inventory reserves		557			414
Operating lease liabilities		4,286			654
Intangible assets		224			322
State net operating loss carryforwards		706			755
Accrued interest and penalty on unrecognized tax liabilities		54			43
Stock-based compensation		378			289
Total gross deferred tax assets		6,391			2,972
Less valuation allowance		(706	)		(755	)
Deferred tax assets after valuation allowance		5,685			2,217

Deferred tax liabilities:
Prepaid expenses		(610	)		(607	)
Operating lease right of use assets		(4,283	)		(600	)
Intangible assets		(1,390	)		(1,725	)
Property, plant and equipment		(217	)		(305	)
Total deferred tax liabilities		(6,500	)		(3,237	)
Net deferred income tax liabilities	$	(815	)	$	(1,020	)

	2023			2022
Balance at beginning of period	$	739		$	630
Additions related to current year positions		73			59
Additions related to prior year positions		45			50
Revaluations due to change in enacted tax rates		-			-
Reductions for tax positions of prior years		-			-
Reductions due to lapses of the statute of limitations		-			-
Reductions pursuant to judgements and settlements		(534	)		-
Balance at end of period	$	323		$	739

	2023			2022
Federal statutory rate		21	%	$	21%
Tax expense at federal statutory rate	$	1,560			2,588
State income taxes, net of Federal income tax benefit		272			413
Tax credits		(135	)		(136	)
Discrete items		50			(65	)
Tax effect of book income not includible for tax purposes		-			(486	)
Other - net, including foreign		29			94
Income tax expense	$	1,776		$	2,408