XML 25 R13.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
6 Months Ended
Oct. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
General. The Company’s effective income tax rate on continuing operations was 24.4% and 24.3% for the six months ended October 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 six months ended October 31, 2021 was primarily due to the impact of state and foreign taxes, as well as equity compensation. The difference in the effective income tax rate over the U.S. federal statutory rate for the six months ended October 31, 2020 was primarily due to the impact of state taxes, foreign tax rates and a change in the valuation allowance.
Valuation allowance. The Company had a valuation allowance of $12.2 million and $11.8 million against its deferred tax assets related to certain U.S. tax jurisdictions as of October 31, 2021 and April 30, 2021, 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 reserve for uncertain tax positions as of October 31, 2021 or April 30, 2021.