Income Taxes

3 Months Ended

Jul. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

General. The Company’s effective income tax rate on continuing operations was 23.5% and 26.4% for the three months ended July 31, 2023 and 2022, respectively. The difference in the effective income tax rate over the U.S. federal statutory rate of 21.0% for the three months ended July 31, 2023 and 2022 was primarily due to the impact of foreign taxes, state taxes and equity compensation.

Valuation allowance. The Company had a valuation allowance of $12.6 million and $11.7 million against its deferred tax assets related to certain U.S. tax jurisdictions as of July 31, 2023 and April 30, 2023, 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 July 31, 2023 or April 30, 2023.