INCOME TAXES (Tables)
|
12 Months Ended |
Apr. 30, 2026 |
|---|
| INCOME TAXES |
|
| Schedule of Income tax benefit (expense) |
Income tax benefit (expense) for the following periods consisted of (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended April 30,
2026 |
|
|
Fiscal Year Ended April 30,
2025 |
|
Income (loss) before income taxes |
|
$ |
26,029 |
|
|
$ |
119,292 |
|
Income tax benefit (expense) |
|
|
(16,816 |
) |
|
|
(25,710 |
) |
Effective tax rate |
|
|
(64.6 |
)% |
|
|
(21.6 |
)% |
The income tax expense (benefit) for the following periods consisted of (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended April 30, 2026 |
|
|
Fiscal Year Ended April 30, 2025 |
|
Current: |
|
|
|
|
|
|
U.S. federal |
|
$ |
(1,806 |
) |
|
$ |
16,750 |
|
State |
|
|
1,576 |
|
|
|
3,364 |
|
Foreign |
|
|
15,994 |
|
|
|
4,783 |
|
Total current |
|
|
15,764 |
|
|
|
24,897 |
|
Deferred: |
|
|
|
|
|
|
U.S. federal |
|
|
931 |
|
|
|
803 |
|
States and local |
|
|
164 |
|
|
|
38 |
|
Foreign |
|
|
(43 |
) |
|
|
(28 |
) |
Total deferred |
|
|
1,052 |
|
|
|
813 |
|
Total Income tax expense (benefit) |
|
$ |
16,816 |
|
|
$ |
25,710 |
|
|
| Schedule of pre-tax book income or loss from continuing operations |
The components of income (loss) before income taxes for the following periods consisted of (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended April 30, 2026 |
|
|
Fiscal Year Ended April 30, 2025 |
|
Domestic |
|
$ |
24,152 |
|
|
$ |
102,041 |
|
Foreign |
|
|
1,877 |
|
|
|
17,251 |
|
Total |
|
$ |
26,029 |
|
|
$ |
119,292 |
|
|
| Details of significant components of net deferred tax assets and liabilities |
Significant components of the net deferred tax assets and liabilities consisted of (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30, 2026 |
|
|
April 30, 2025 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
64,199 |
|
|
$ |
69,286 |
|
State income taxes |
|
|
60 |
|
|
|
143 |
|
Deferred revenue |
|
|
1,091 |
|
|
|
1,653 |
|
Research and development and other credits |
|
|
4,267 |
|
|
|
4,289 |
|
Reserve and accruals recognized in different periods |
|
|
26,042 |
|
|
|
30,890 |
|
Capitalized research and development expenses |
|
|
2,289 |
|
|
|
2,628 |
|
Depreciation and amortization |
|
|
— |
|
|
|
634 |
|
Lease liability |
|
|
33,130 |
|
|
|
38,153 |
|
Interest and loss carryovers |
|
|
13,551 |
|
|
|
17,685 |
|
Deferred financing costs |
|
|
1,988 |
|
|
|
2,954 |
|
Other |
|
|
944 |
|
|
|
1,399 |
|
Total deferred tax assets |
|
|
147,561 |
|
|
|
169,714 |
|
Valuation allowance |
|
|
(80,491 |
) |
|
|
(80,079 |
) |
Net deferred tax assets |
|
|
67,070 |
|
|
|
89,635 |
|
|
|
|
|
|
|
|
Deferred tax liability |
|
|
|
|
|
|
ROU assets |
|
|
(30,963 |
) |
|
|
(39,702 |
) |
Intangibles |
|
|
(19,025 |
) |
|
|
(19,714 |
) |
Property and Equipment |
|
|
(7,583 |
) |
|
|
(11,666 |
) |
LIFO |
|
|
(8,351 |
) |
|
|
(16,944 |
) |
Depreciation and amortization |
|
|
(26 |
) |
|
|
— |
|
Outside Basis Difference on Investment |
|
|
(17,524 |
) |
|
|
(16,836 |
) |
Total deferred tax liabilities |
|
|
(83,472 |
) |
|
|
(104,862 |
) |
Net Deferred tax assets (liabilities) |
|
$ |
(16,402 |
) |
|
$ |
(15,227 |
) |
|
| Reconciliation between provision for income taxes at statutory rate and effective tax rate |
For the fiscal year ended April 30, 2026, the reconciliation of federal statutory income tax rate to our effective tax rate was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended April 30, 2026 |
|
|
Fiscal Year Ended April 30, 2026 |
|
Federal statutory rate |
|
$ |
5,466 |
|
|
|
21.00 |
% |
State and local income taxes (net of federal income tax effect) (a) |
|
|
1,569 |
|
|
|
6.03 |
% |
Foreign tax effects |
|
|
|
|
|
|
Ireland |
|
|
|
|
|
|
True-up from amended prior-year tax filing |
|
|
(1,532 |
) |
|
|
(5.88 |
)% |
Other |
|
|
103 |
|
|
|
0.40 |
% |
Korea |
|
|
|
|
|
|
Foreign withholding tax |
|
|
16,723 |
|
|
|
64.24 |
% |
Canada |
|
|
|
|
|
|
Change in valuation allowance |
|
|
(393 |
) |
|
|
(1.51 |
)% |
True-up from amended prior-year tax filing |
|
|
349 |
|
|
|
1.59 |
% |
Other |
|
|
58 |
|
|
|
(0.03 |
)% |
India |
|
|
|
|
|
|
Foreign withholding tax |
|
|
76 |
|
|
|
0.29 |
% |
Other |
|
|
196 |
|
|
|
0.75 |
% |
Other |
|
|
|
|
|
|
Other |
|
|
(24 |
) |
|
|
(0.09 |
)% |
Effect of cross-border tax laws (GILTI/FDII/SubF) |
|
|
(41 |
) |
|
|
(0.16 |
)% |
Tax credits |
|
|
(1,314 |
) |
|
|
(5.05 |
)% |
Change in valuation allowance |
|
|
(2,236 |
) |
|
|
(8.59 |
)% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
Non-deductible officer compensation 162m |
|
|
1,387 |
|
|
|
5.33 |
% |
Other |
|
|
61 |
|
|
|
0.24 |
% |
Changes in unrecognized tax benefits |
|
|
(785 |
) |
|
|
(3.01 |
)% |
Other: |
|
|
|
|
|
|
Impacts for amended return filings |
|
|
(5,462 |
) |
|
|
(20.98 |
)% |
PPA amortization |
|
|
2,253 |
|
|
|
8.66 |
% |
RTP/True-up from amended prior-year tax filing |
|
|
(35 |
) |
|
|
(0.14 |
)% |
DTL on outside basis difference for investment |
|
|
480 |
|
|
|
1.84 |
% |
Other |
|
|
(83 |
) |
|
|
(0.32 |
)% |
Effective tax rate |
|
$ |
16,816 |
|
|
|
64.61 |
% |
(a)State taxes in Florida made up the majority (greater than 50 percent) of the tax effect in this category. As previously disclosed for the fiscal year ended April 30, 2025, prior to the adoption of ASU 2023-09, the reconciliation of federal statutory income tax rate to our effective tax rate was as follows (in thousands):
|
|
|
|
|
|
|
Fiscal Year Ended April 30, 2025 |
|
Federal statutory rate |
|
|
21.00 |
% |
Foreign withholding |
|
|
1.68 |
% |
Stock-based compensation expense |
|
|
0.01 |
% |
Foreign rate differential |
|
|
(0.80 |
)% |
True-up from amended prior-year tax filing |
|
|
(0.44 |
)% |
Tax reserves |
|
|
1.25 |
% |
Transaction costs |
|
|
0.05 |
% |
Purchase accounting amortization |
|
|
(6.36 |
)% |
Other |
|
|
0.15 |
% |
FTC and R&D Credits |
|
|
(3.31 |
)% |
State taxes, net of federal benefit |
|
|
2.73 |
% |
Subpart F, GILTI and FDII |
|
|
(0.33 |
)% |
Non-deductible officers compensation |
|
|
3.02 |
% |
Valuation allowance |
|
|
(0.50 |
)% |
Deductible dividend |
|
|
(0.12 |
)% |
Deferred tax liability on outside basis difference in investment |
|
|
3.52 |
% |
Effective tax rate |
|
|
21.55 |
% |
|
| Schedule of Cash Taxes Paid, Net |
Cash taxes paid, net for the fiscal year ended April 30, 2026, were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Immersion |
|
|
Barnes & Noble Education |
|
Federal |
|
$ |
— |
|
|
$ |
5,870 |
|
State |
|
|
|
|
|
|
Florida |
|
|
340 |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
1,772 |
|
Foreign |
|
|
|
|
|
|
Ireland |
|
|
917 |
|
|
|
— |
|
South Korea (WHT) |
|
|
10,814 |
|
|
|
— |
|
Other |
|
|
59 |
|
|
|
275 |
|
Income taxes paid (net of refunds received) |
|
$ |
12,130 |
|
|
$ |
7,917 |
|
|
| Reconciliation of beginning and ending amount of gross unrecognized tax benefits |
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended April 30, 2026 |
|
|
Fiscal Year Ended April 30, 2025 |
|
Balance at beginning of period |
|
$ |
13,269 |
|
|
$ |
7,580 |
|
Increases for tax positions of prior years |
|
|
— |
|
|
|
— |
|
Gross increase (decreases) for federal tax rate change for tax positions of prior years |
|
|
(923 |
) |
|
|
901 |
|
Settlements |
|
|
(1,772 |
) |
|
|
— |
|
Gross increases for tax positions of current year |
|
|
— |
|
|
|
4,788 |
|
Balance at end of period |
|
$ |
10,574 |
|
|
$ |
13,269 |
|
|