v3.25.2
Income Taxes
 12 Months Ended
Apr. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes were as follows:
For the Years Ended April 30,
202520242023
Current provision
US – Federal$5,497 $2,152 $2,857 
International50,300 49,357 48,694 
State and local1,981 (337)1,797 
Total current provision$57,778 $51,172 $53,348 
Deferred provision (benefit)
US – Federal$3,394 $(25,026)$(24,368)
International1,696 (4,772)(8,705)
State and local(4,151)(8,102)(4,408)
Total deferred provision (benefit)$939 $(37,900)$(37,481)
Total provision$58,717 $13,272 $15,867 
International and United States pretax income (loss) were as follows:
For the Years Ended April 30,
202520242023
International$189,781 $109,616 $204,055 
United States(46,903)(296,663)(170,955)
Total$142,878 $(187,047)$33,100 
Our effective income tax rate as a percentage of pretax income differed from the US federal statutory rate as shown below:
For the Years Ended April 30,
202520242023
US federal statutory rate21.0 %21.0 %21.0 %
Impact of foreign operations8.8 %(11.7)%(10.5)%
Change in valuation allowance14.4 %(14.0)%(7.4)%
State income taxes, net of US federal tax benefit(1.5)%4.6 %(7.2)%
Tax credits and related net benefits(2.7)%1.8 %(12.1)%
Impairment of goodwill— %(10.9)%66.7 %
Return to provision(1.9)%6.1 %(13.7)%
Other3.0 %(4.0)%11.1 %
Effective income tax rate41.1 %(7.1)%47.9 %
The Company's effective tax rate for the fiscal year ended April 30, 2025, was primarily driven by the impact of the US valuation allowance, the rates of tax imposed on income earned in foreign jurisdictions, and state taxes.
Accounting for Uncertainty in Income Taxes:
As of April 30, 2025, and April 30, 2024, the total amount of unrecognized tax benefits was $9.8 million and $9.2 million, respectively, of which $0.4 million and $0.2 million represented accruals for interest and penalties recorded as additional tax expense in accordance with our accounting policy. As of April 30, 2025, and April 30, 2024, the total interest and penalties was $0.8 million and $0.6 million, respectively. We recorded net interest expense on reserves for unrecognized and recognized tax benefits of $0.2 million in each of the years ended April 30, 2025, and April 30, 2024. As of April 30, 2025, and April 30, 2024, the total amounts of unrecognized tax benefits that would reduce our income tax provision, if recognized, were approximately $9.8 million and $9.2 million, respectively. We do not expect any significant changes to the unrecognized tax benefits within the next twelve months.

A reconciliation of the unrecognized tax benefits included within the Other long-term liabilities on the Consolidated Statements of Financial Position is as follows:
For the Years Ended April 30,
20252024
Balance at May 1$9,151 $9,421 
Additions for current year tax positions1,423 1,607 
Reductions for prior year tax positions(337)(181)
Payments and settlements— (849)
Reductions for lapse of statute of limitations(440)(847)
Balance at April 30$9,797 $9,151 
Tax Audits:
We file income tax returns in the US and various states and non-US tax jurisdictions. Our major taxing jurisdictions are the United States, the United Kingdom, and Germany. We are no longer subject to income tax examinations for years prior to fiscal year 2014 in the major jurisdictions in which we are subject to tax.
Deferred Taxes:
Deferred taxes result from temporary differences in the recognition of revenue and expense for tax and financial reporting purposes.
The significant components of deferred tax assets and liabilities as of April 30 were as follows:
20252024
Net operating losses$11,360 $22,587 
Reserve for sales returns and doubtful accounts2,095 2,363 
Accrued employee compensation24,967 27,293 
Foreign and federal credits28,835 33,742 
Other accrued expenses1,009 3,822 
Retirement and post-employment benefits8,282 10,203 
Operating lease liabilities18,308 23,095 
Interest expense disallowance14,919 10,676 
Impairment
9,543 — 
Other
415 — 
Total gross deferred tax assets$119,733 $133,781 
Less valuation allowance(77,309)(53,498)
Total deferred tax assets$42,424 $80,283 
Prepaid expenses and other assets$(861)$(5,352)
Unremitted foreign earnings(2,220)(3,115)
Intangible and fixed assets(130,077)(155,862)
Right-of-use assets(10,848)(12,685)
Total deferred tax liabilities$(144,006)$(177,014)
Net deferred tax liabilities$(101,582)$(96,731)
Reported As
Deferred tax assets excluding held-for-sale
3,563 3,147 
Deferred tax assets held-for-sale
— 6,176 
   Deferred tax assets$3,563 $9,323 
Deferred tax liabilities excluding held-for-sale
(105,145)(97,186)
Deferred tax liabilities held-for-sale
— (8,868)
   Deferred tax liabilities(105,145)(106,054)
   Net deferred tax liabilities$(101,582)$(96,731)
The change in net deferred taxes was primarily due to the decrease in net deferred tax liabilities primarily attributable to a decrease in tax liabilities in the capitalization of research and development (R&D) expenses. In addition, we had a decrease in net deferred tax assets related to an increase in the valuation allowance. In assessing the need for a valuation allowance, we take into account prior earnings history, expected future earnings, reversal of existing taxable temporary differences, carry back and carry forward periods and tax planning strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. Changes to tax laws and statutory tax rates can also have an impact on our valuation allowances. Changes in valuation allowances are included in the Company’s income tax provision in the period of change.
We have provided a $77.3 million valuation allowance as of April 30, 2025. This valuation allowance is increased by approximately $23.8 million from the valuation allowance as of April 30, 2024. In fiscal year 2024, due to temporary differences in the US, our deferred taxes reversed from a net deferred tax liability position to a net deferred tax asset position. Due to losses in the US resulting from impairments, restructuring, and acceleration of amortization expense on capitalized software, we concluded it was more-likely-than-not that all or a portion of our deferred tax asset may not be realized. As a result, we established a valuation allowance of $30.2 million. During fiscal year 2025 we increased this valuation allowance by $26.0 million, because of an increase in the US net deferred tax asset attributable primarily to interest expense disallowance and intangible and fixed assets.
As of April 30, 2025, we have apportioned state net operating loss carryforwards totaling approximately $126 million, with a tax effected value of $7.1 million net of federal benefits. We have foreign net operating loss carryforwards totaling approximately $0.1 million, and federal net operating loss carryforwards totaling $2.4 million, with a tax effected value of $0.5 million. Our state, foreign, and federal NOLs and credits, to the extent they expire, expire in various amounts from 1 year to indefinite.
We intend to repatriate earnings from our non-US subsidiaries, and to the extent we repatriate these funds to the US, we may be required to pay taxes in various US state and local jurisdictions and withholding or similar taxes in applicable non-US jurisdictions in the periods in which such repatriation occurs. As of April 30, 2025, we have recorded a $2.2 million liability related to the estimated taxes that would be incurred upon repatriating certain non-US earnings to the US.