v3.26.1
Income Taxes
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
Note 14: Income Taxes

The following table sets forth our income (loss) before income taxes.
Year Ended April 30,
  202620252024
Domestic$(95.8)$(1,087.6)$975.8 
Foreign33.4 40.8 20.6 
Income (loss) before income taxes$(62.4)$(1,046.8)$996.4 
The following table summarizes the components of the provision for income taxes.
  Year Ended April 30,
  202620252024
Current:
Federal$135.1 $228.0 $234.1 
Foreign6.0 11.7 10.1 
State and local38.5 52.3 48.7 
Deferred:
Federal(93.2)(45.4)(35.7)
Foreign0.4 (0.5)(2.3)
State and local(10.5)(62.1)(2.5)
Total income tax expense$76.3 $184.0 $252.4 

The income tax expense of $76.3 for 2026 includes the unfavorable permanent impact associated with the goodwill impairment charge for the Sweet Baked Snacks reporting unit. The income tax expense of $184.0 for 2025 includes unfavorable permanent impacts associated with the goodwill impairment charges for the Sweet Baked Snacks reporting unit and the sale of the Voortman business, partially offset by the favorable noncash deferred tax benefits associated with the integration of Hostess Brands into our Company and certain state legislative changes enacted during the year. The income tax expense of $252.4 for 2024 includes unfavorable permanent and deferred tax impacts associated with the acquisition of Hostess Brands.
The following table sets forth a reconciliation of the statutory federal income tax rate and the effective income tax rate. The Company adopted ASU 2023-09 related to income tax disclosures on a retrospective basis.
  Year Ended April 30,
202620252024
AmountPercentAmountPercentAmountPercent
Statutory federal income tax rate$(13.1)21.0 %$(219.8)21.0 %$209.2 21.0 %
State and local income taxes, net of federal tax effect (A)
22.7 (36.4)(7.7)0.8 36.5 3.7 
Foreign tax effects3.6 (5.8)3.9 (0.4)3.1 0.3 
Effect of cross border tax laws (B)
(0.7)1.2 23.2 (2.2)(0.6)(0.1)
Tax credits(3.6)5.8 (3.4)0.3 (3.5)(0.4)
Changes in valuation allowances(2.0)3.2 7.6 (0.7)— — 
Nontaxable or nondeductible items:
Goodwill impairment charges65.3 (104.7)348.9 (33.3)— — 
Sale of Voortman business
— — 21.5 (2.1)— — 
Other2.6 (4.2)5.9 (0.6)15.4 1.6 
Changes in unrecognized tax benefits(1.0)1.6 (1.2)0.1 (1.9)(0.2)
Other adjustments2.5 (4.0)5.1 (0.5)(5.8)(0.6)
Effective income tax rate$76.3 (122.3)%$184.0 (17.6)%$252.4 25.3 %
(A)State taxes in Kansas, Pennsylvania, New Jersey, Georgia, Illinois, Texas, Louisiana, and Minnesota make up the majority (greater than 50%) of tax effect in this category in 2026. State taxes in Kansas and California make up the majority (greater than 50%) of tax effect in this category in 2025. State taxes in Kansas, California, Illinois, and Pennsylvania make up the majority (greater than 50%) of tax effect in this category in 2024.
(B)The effect of cross border tax laws in 2025 primarily related to the GILTI inclusion on the sale of the Voortman business.
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the “Act”). The corporate tax changes included in the Act did not have a material impact on our effective income tax rate in 2026 and we do not anticipate a material impact on our effective income tax rate in future periods. The Act’s provisions for accelerated tax deductions reduced our federal cash income tax requirements for the current year.
The following table sets forth the income taxes paid, net of refunds received, by material jurisdiction.
Year Ended April 30,
202620252024
Federal$2.3 $268.6 $266.6 
Foreign13.3 10.9 2.3 
State and local26.5 52.6 47.6 
Income taxes paid$42.1 $332.1 $316.5 
We are a voluntary participant in the Compliance Assurance Process (“CAP”) program offered by the IRS and are currently under a CAP examination for the tax years ended April 30, 2025, April 30, 2026, and April 30, 2027. The fiscal years prior to 2023 are no longer subject to U.S. federal tax examination under the statute of limitations. With limited exceptions, we are no longer subject to examination for state, local, and foreign jurisdictions for the tax years prior to 2022.
Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. The following table summarizes significant components of our deferred tax assets and liabilities.
  April 30,
  20262025
Deferred tax liabilities:
Intangible assets$1,323.8 $1,454.4 
Property, plant, and equipment296.6 275.5 
Leases31.0 24.3 
Other27.1 25.9 
Total deferred tax liabilities$1,678.5 $1,780.1 
Deferred tax assets:
Post-employment and other employee benefits$53.5 $62.1 
Tax credit and loss carryforwards35.2 35.5 
Intangible assets61.6 34.4 
Hedging transactions20.2 11.6 
Leases32.9 26.0 
Other48.0 95.5 
Total deferred tax assets$251.4 $265.1 
Valuation allowance(32.5)(33.6)
Total deferred tax assets, less allowance$218.9 $231.5 
Net deferred tax liability$1,459.6 $1,548.6 
We evaluate the realizability of deferred tax assets for each of the jurisdictions in which we operate. The total valuation allowance decreased by $1.1 during the year.
As of April 30, 2026, we have determined that a portion of our undistributed earnings, in Canada, is not permanently reinvested, resulting in the recognition of an immaterial deferred tax liability.
Our unrecognized tax benefits were $1.5, $2.5, and $4.6, of which $1.2, $2.0, and $3.7 would affect the effective income tax rate, if recognized, as of April 30, 2026, 2025, and 2024, respectively.
The following table sets forth a reconciliation of our unrecognized tax benefits.
202620252024
Balance at May 1, $2.5 $4.6 $5.3 
Increases:
Acquired business— — 1.3 
Decreases:
Expiration of statute of limitations periods1.0 1.3 2.0 
Disposed business— 0.8 — 
Balance at April 30,$1.5 $2.5 $4.6