v3.26.1
Income Taxes
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The (benefit) provision for income taxes were as follows:
For the Years Ended April 30,
202620252024
Current provision
US – Federal$4,445 $5,497 $2,152 
International62,254 50,300 49,357 
State and local1,454 1,981 (337)
Total current provision$68,153 $57,778 $51,172 
Deferred (benefit) provision
US – Federal$(53,217)$3,394 $(25,026)
International(10,993)1,696 (4,772)
State and local(10,474)(4,151)(8,102)
Total deferred (benefit) provision$(74,684)$939 $(37,900)
Total (benefit) provision$(6,531)$58,717 $13,272 
International and United States pretax income (loss) were as follows:
For the Years Ended April 30,
202620252024
International$192,809 $189,781 $109,616 
United States22,277 (46,903)(296,663)
Total$215,086 $142,878 $(187,047)
In accordance with our adoption of ASU 2023-09 on a prospective basis, the reconciliation of our US federal statutory tax rate to our effective income tax rate, presented as both a rate and dollar amount, is as follows:
For the Year Ended April 30, 2026
US federal statutory rate$45,168 21.0 %
State and local income tax, net of federal (national) income tax effect(1)
(9,478)(4.4)%
Foreign tax effects
United Kingdom5,773 2.7 %
Germany
Statutory tax rate difference(4,630)(2.2)%
Changes in future corporate income tax rate(4,286)(2.0)%
Trade tax12,225 5.7 %
Other905 0.4 %
Hong Kong
Pillar II top-up tax2,611 1.2 %
Tax exemption(2,873)(1.3)%
Other(782)(0.4)%
Brazil
Withholding tax2,686 1.2 %
Other
59 — %
Australia2,164 1.0 %
Other foreign jurisdictions599 0.3 %
Effect of changes in tax laws or rates enacted in the current period— — %
Effect of cross-border tax laws
Net controlled foreign corporation tested income3,942 1.8 %
Foreign-derived deduction eligible income(5,049)(2.3)%
Tax credits(1,737)(0.8)%
Changes in valuation allowances(57,019)(26.4)%
Nontaxable or nondeductible items3,482 1.6 %
Worldwide changes in unrecognized tax benefits333 0.2 %
Other adjustments(624)(0.3)%
Effective income tax rate$(6,531)(3.0)%
(1)
State taxes in California, New Jersey, Illinois, Pennsylvania, Massachusetts, Maryland, and New York made up the majority (greater than 50 percent) of the tax effect in this category
The Company's effective tax rate for the fiscal year ended April 30, 2026, was primarily driven by the impact of the US valuation allowance, the enactment of tax rate reductions in Germany, the rates of tax imposed on income earned in foreign jurisdictions, and state taxes.
Prior to the adoption of ASU 2023-09, 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,
20252024
US federal statutory rate21.0 %21.0 %
Impact of foreign operations8.8 %(11.7)%
Change in valuation allowance14.4 %(14.0)%
State income taxes, net of US federal tax benefit(1.5)%4.6 %
Tax credits and related net benefits(2.7)%1.8 %
Impairment of goodwill— %(10.9)%
Return to provision(1.9)%6.1 %
Other3.0 %(4.0)%
Effective income tax rate41.1 %(7.1)%

Cash paid for income taxes, net of refunds received, by jurisdiction is as follows:

For the Year Ended April 30, 2026
Federal$410 
State and local1,789 
International
UK21,317 
Germany20,910 
Australia8,377 
Other5,621 
Cash paid for income taxes, net of refunds received$58,424 

Accounting for Uncertainty in Income Taxes:
As of April 30, 2026 and 2025, the total amount of unrecognized tax benefits was $10.2 million and $9.8 million, respectively, of which $0.6 million and $0.4 million represented accruals for interest and penalties recorded as additional tax expense in accordance with our accounting policy. As of April 30, 2026 and 2025, the total interest and penalties was $1.0 million and $0.8 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, 2026, 2025, and 2024. As of April 30, 2026 and 2025, the total amounts of unrecognized tax benefits that would reduce our income tax provision, if recognized, were approximately $10.2 million and $9.8 million, respectively.

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,
20262025
Balance at May 1$9,797 $9,151 
Additions for current year tax positions1,428 1,423 
Reductions for prior year tax positions(119)(337)
Reductions for lapse of statute of limitations(887)(440)
Balance April 30$10,219 $9,797 
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, Germany, and Australia. 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:
20262025
Net operating losses$7,437 $11,360 
Capital losses2,948 — 
Reserve for sales returns and doubtful accounts2,988 2,095 
Accrued employee compensation20,946 24,967 
Foreign and federal credits23,891 28,835 
Other accrued expenses1,039 1,009 
Retirement and post-employment benefits5,491 8,282 
Operating lease liabilities16,685 18,308 
Interest expense disallowance6,689 14,919 
Impairment— 9,543 
Other517 415 
Total gross deferred tax assets$88,631 $119,733 
Less valuation allowance(7,282)(77,309)
Total deferred tax assets$81,349 $42,424 
 
Prepaid expenses and other assets$(813)$(861)
Unremitted foreign earnings(2,220)(2,220)
Intangible and fixed assets(108,088)(130,077)
Right-of-use assets(10,289)(10,848)
Total deferred tax liabilities$(121,410)$(144,006)
Net deferred tax liabilities$(40,061)$(101,582)
 
Reported As
Deferred tax assets$58,911 $3,563 
Deferred tax liabilities(98,972)(105,145)
Net deferred tax liabilities$(40,061)$(101,582)
The change in net deferred taxes during fiscal year 2026 was primarily attributable to the release of approximately $70.0 million of valuation allowance previously recorded against US federal and state deferred tax assets. The valuation allowance release was driven by management’s conclusion that it is more likely than not that substantially all US federal and state deferred tax assets will be realized based on all available positive and negative evidence, primarily related to the elimination of losses associated with businesses that have been divested and demonstrated sustained US pretax income adjusted for other comprehensive income and permanent differences as of April 30, 2026. This information is both objective and verifiable and represents positive evidence that when considered alongside the other positive and negative factors, as well as the anticipated future earnings, supports management’s conclusion as to the realizability of substantially all of the US federal and state deferred tax assets. The release of the valuation allowance on US net deferred tax assets resulted in the recognition of deferred tax assets and income tax benefit in the current period.
We have provided a $7.3 million valuation allowance as of April 30, 2026 for deferred tax assets related to capital losses that are not realizable as of the current period due to lack of capital gains, and state NOLs and credits that we expect will expire unutilized.
As of April 30, 2026, we have apportioned state net operating loss carryforwards totaling approximately $134.4 million, with a tax effected value of $6.7 million net of federal benefits. We have foreign net operating loss carryforwards totaling approximately $0.3 million, and federal net operating loss carryforwards totaling $1.9 million, with a tax effected value of $0.4 million. We also have US capital loss carryforwards total approximately $12.1 million, with a tax effected value of $2.9 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, 2026, 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.
Enactment of the "One Big Beautiful Bill Act" (OBBBA)
On July 4, 2025, President Trump signed into law the OBBBA. Key corporate tax provisions of the OBBBA include a handful of elective tax measures such as restoration of 100% bonus depreciation, the introduction of new Section 174A permitting immediate expending of domestic research and experimental (R&E) expenditures. Other tax measures include modifications to Section 163(j) interest expense limitations, updates to the rules governing global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII), amendments to energy credit provisions, and the expansion of Section 162(m) aggregation requirements.
Under US GAAP, the effects of changes in tax laws are recognized in the period in which the new law is enacted. Upon assessment of the OBBBA, we determined the impact of these to be insignificant and reflected these in our financial statements using management's best estimate for fiscal year 2026. We are continuing to evaluate the impact of the OBBBA on future periods.