Income Taxes |
3 Months Ended |
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Jul. 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Our consolidated interim effective tax rate is based on our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions where we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the fiscal quarter in which the related event or a change in judgment occurs. The effective tax rate on ordinary income for the full fiscal year is expected to be 22.2%, which is greater than the U.S. federal statutory rate of 21.0% due to the tax effects of foreign operations and state taxes, offset by the beneficial impact of the foreign-derived deduction eligible income and tax credits. The effective tax rate of 23.0% for the three months ended July 31, 2026, was higher than the expected tax rate of 22.2% on ordinary income for the full fiscal year ending April 30, 2027, primarily due to the impact of prior fiscal year true-ups in the current period. The effective tax rate of 23.0% for the three months ended July 31, 2026, was higher than the effective tax rate of 22.5% for the same period last year. The increase in our effective tax rate was driven primarily by the increased tax impact of foreign operations and higher state taxes, partially offset by the favorable year-over-year impact of prior fiscal year true-ups. The OECD 15% global minimum tax under the Pillar Two Model Rules, which is now effective in countries with enacted legislation, did not materially impact our financial results in the three months ended July 31, 2026. We will continue to evaluate the impact in future periods as previously-enacting countries issue related guidance and additional countries consider adoption of the global minimum tax rules. On January 5, 2026, the OECD Inclusive Framework members approved changes to the model rules for the global minimum tax. We are monitoring the implementation of these rules into local laws; however, no material impact to the financial statements is expected for the fiscal year ending April 30, 2027. On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the United States, which encompasses a broad range of tax reform provisions. We do not expect this to have a material impact on our estimated annual effective tax rate for the fiscal year ending April 30, 2027.
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