XML 24 R13.htm IDEA: XBRL DOCUMENT

Income Taxes	9 Months Ended
Jan. 31, 2021
Income Taxes
Income Taxes	7. Income Taxes General. The Company’s effective income tax rate on continuing operations was 24.7% and 22.0% for the nine months ended January 31, 2021 and 2020, respectively. The difference in the effective income tax rate over the U.S. federal statutory rate of 21.0% for the nine months ended January 31, 2021 was primarily due to the impact of state taxes, foreign taxes and equity based compensation. The difference in the effective income tax rate over the U.S. federal statutory rate for the nine months ended January 31, 2020 was primarily due to the impact of equity based compensation, as well as foreign tax rates and state taxes and other tax effects associated with the acquisition of Titan. Valuation allowance. The Company had a valuation allowance of $10.7 million and $10.2 million against its deferred tax assets related to certain U.S. tax jurisdictions as of January 31, 2021 and April 30, 2020, respectively. 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 uncertain tax positions as of January 31, 2021 or April 30, 2020.

Income Taxes

9 Months Ended

Jan. 31, 2021

7. Income Taxes

General. The Company’s effective income tax rate on continuing operations was 24.7% and 22.0% for the nine months ended January 31, 2021 and 2020, respectively. The difference in the effective income tax rate over the U.S. federal statutory rate of 21.0% for the nine months ended January 31, 2021 was primarily due to the impact of state taxes, foreign taxes and equity based compensation. The difference in the effective income tax rate over the U.S. federal statutory rate for the nine months ended January 31, 2020 was primarily due to the impact of equity based compensation, as well as foreign tax rates and state taxes and other tax effects associated with the acquisition of Titan.

Valuation allowance. The Company had a valuation allowance of $10.7 million and $10.2 million against its deferred tax assets related to certain U.S. tax jurisdictions as of January 31, 2021 and April 30, 2020, respectively. 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 uncertain tax positions as of January 31, 2021 or April 30, 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details