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

Note 10 - Income Taxes (Tables)

12 Months Ended

Mar. 31, 2024

	Fiscal year ended March 31, 2024
	Current			Deferred			Total
Income tax expense (benefit) on current year income:
Federal	$	2,065		$	(883	)	$	1,182
State		346			(209	)		137
Foreign		14			-			14
Total income tax expense (benefit) on current year income		2,425			(1,092	)		1,333
Income tax expense (benefit) - discrete items:
Reserve for unrecognized tax benefits		43			-			43
Adjustment to prior year provision		(68	)		-			(68	)
Tax shortfall related to stock-based compensation		26			-			26
Income tax expense - discrete items		1			-			1
Total income tax expense (benefit)	$	2,426		$	(1,092	)	$	1,334

	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
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

	March 31, 2024			April 2, 2023
Deferred income tax assets:
Employee wage and benefit accruals	$	148		$	186
Accounts receivable and inventory reserves		585			557
Operating lease liabilities		3,892			4,286
Intangible assets		243			224
State net operating loss carryforwards		704			706
Accrued interest and penalty on unrecognized tax liabilities		18			54
Stock-based compensation		469			378
Total gross deferred income tax assets		6,059			6,391
Less valuation allowance		(704	)		(706	)
Deferred income tax assets after valuation allowance		5,355			5,685

Deferred income tax liabilities:
Prepaid expenses		(552	)		(610	)
Operating lease right of use assets		(3,700	)		(4,283	)
Intangible assets		(666	)		(1,390	)
Property, plant and equipment		(160	)		(217	)
Total deferred income tax liabilities		(5,078	)		(6,500	)
Net deferred income tax assets (liabilities)	$	277		$	(815	)

	2024		2023
Balance at beginning of period	$	323	$	739
Additions related to current year positions		43		73
Additions related to prior year positions		28		45
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	$	394	$	323

	Fiscal year ended March 31, 2024						Fiscal year ended April 2, 2023
	Amount			Percentage			Amount			Percentage
Income before income tax expense	$	6,228			100.0	%	$	7,426			100.0	%

Tax expense at federal statutory rate	$	1,308			21.0	%	$	1,560			21.0	%
State income taxes, net of Federal income tax benefit		108			1.7	%		272			3.6	%
Tax credits		(115	)		-1.8	%		(135	)		-1.8	%
Discrete items		1			0.0	%		50			0.7	%
Other - net, including foreign		32			0.5	%		29			0.4	%
Income tax expense	$	1,334			21.4	%	$	1,776			23.9	%