Income Taxes	9 Months Ended
Jan. 31, 2019
Income Taxes
Income Taxes	6. Income Taxes The Company’s effective income tax rate on continuing operations for the nine months ended January 31, 2019 was 23.9% compared to an effective income tax rate of 22.7% for the nine months ended January 31, 2018. The increase in the effective income tax rate was primarily due to the impact of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and the impact of foreign tax rates and other tax effects associated with the acquisition of Titan. The U.S. federal statutory rate is 21.0%. Tax Cuts and Jobs Act. On December 22, 2017, the Tax Act was signed into law. The Tax Act includes a number of provisions, including the lowering of the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. In connection with the Tax Act, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance to companies that had not completed their accounting for the income tax effects of the Tax Act. Under SAB 118, provisional amounts could be recorded to the extent a reasonable estimate could be made. Additional tax effects and adjustments to previously recorded provisional amounts could be recorded upon obtaining, preparing, or analyzing additional information (including computations) within one year from the enactment date of the Tax Act. As of January 31, 2018, the Company was still assessing the overall impact of the Tax Act on its financial statements and had not completed its accounting for the tax effects of the Tax Act. As of January 31, 2018, the Company reported provisional amounts reflecting reasonable estimates for the re-measurement of net deferred tax liabilities due to the reduction in the corporate rate. The Company recorded a provisional income tax benefit of $7.8 million for this re-measurement during the three and nine months ended January 31, 2018, which was included in provision for income taxes in the Condensed Consolidated Statements of Operations and Comprehensive Income. As of January 31, 2019, the Company completed its analysis to determine the effects of the Tax Act. As a result, the Company recorded a $0.1 million income tax benefit during the nine months ended January 31, 2019 related to tax adjustments made in accordance with SAB 118 with respect to the adjustment of its original provisional estimate of the impact of the Tax Act. Due to the acquisition of Titan, the Company is now subject to provisions of the Tax Act related to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We have elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. In general, it is the practice and intention of the Company to reinvest the accumulated earnings of its non-U.S. subsidiaries in those operations. Foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the United States. Valuation allowance. The Company also had a valuation allowance of $0.4 million against its deferred tax assets related to certain U.S. tax jurisdictions as of January 31, 2019 and April 30, 2018. To the extent the Company generates sufficient taxable income in the future to utilize the tax benefits of the net deferred tax assets on which a valuation allowance is recorded, the effective tax rate may decrease as the valuation allowance is reversed. Uncertain tax positions. The Company had no reserve for uncertain tax positions as of January 31, 2019 and April 30, 2018.

6. Income Taxes

The Company’s effective income tax rate on continuing operations for the nine months ended January 31, 2019 was 23.9% compared to an effective income tax rate of 22.7% for the nine months ended January 31, 2018. The increase in the effective income tax rate was primarily due to the impact of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and the impact of foreign tax rates and other tax effects associated with the acquisition of Titan. The U.S. federal statutory rate is 21.0%.

Tax Cuts and Jobs Act. On December 22, 2017, the Tax Act was signed into law. The Tax Act includes a number of provisions, including the lowering of the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. In connection with the Tax Act, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance to companies that had not completed their accounting for the income tax effects of the Tax Act. Under SAB 118, provisional amounts could be recorded to the extent a reasonable estimate could be made. Additional tax effects and adjustments to previously recorded provisional amounts could be recorded upon obtaining, preparing, or analyzing additional information (including computations) within one year from the enactment date of the Tax Act.

As of January 31, 2018, the Company was still assessing the overall impact of the Tax Act on its financial statements and had not completed its accounting for the tax effects of the Tax Act. As of January 31, 2018, the Company reported provisional amounts reflecting reasonable estimates for the re-measurement of net deferred tax liabilities due to the reduction in the corporate rate. The Company recorded a provisional income tax benefit of $7.8 million for this re-measurement during the three and nine months ended January 31, 2018, which was included in provision for income taxes in the Condensed Consolidated Statements of Operations and Comprehensive Income.

As of January 31, 2019, the Company completed its analysis to determine the effects of the Tax Act. As a result, the Company recorded a $0.1 million income tax benefit during the nine months ended January 31, 2019 related to tax adjustments made in accordance with SAB 118 with respect to the adjustment of its original provisional estimate of the impact of the Tax Act.

Due to the acquisition of Titan, the Company is now subject to provisions of the Tax Act related to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We have elected to recognize the tax on GILTI as a period expense in the period the tax is incurred.

In general, it is the practice and intention of the Company to reinvest the accumulated earnings of its non-U.S. subsidiaries in those operations. Foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the United States.

Valuation allowance. The Company also had a valuation allowance of $0.4 million against its deferred tax assets related to certain U.S. tax jurisdictions as of January 31, 2019 and April 30, 2018. To the extent the Company generates sufficient taxable income in the future to utilize the tax benefits of the net deferred tax assets on which a valuation allowance is recorded, the effective tax rate may decrease as the valuation allowance is reversed.

Uncertain tax positions. The Company had no reserve for uncertain tax positions as of January 31, 2019 and April 30, 2018.