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Income Taxes
 12 Months Ended
Apr. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents the components of income before taxes for the years ended April 30, 2024, 2023 and 2022:
Year Ended April 30,
202420232022
(in thousands)
United States$347,309 $392,299 $320,353 
Foreign26,857 55,204 44,466 
Income before taxes$374,166 $447,503 $364,819 
The following table presents the components of the provision for income taxes for the years ended April 30, 2024, 2023 and 2022:
Year Ended April 30,
202420232022
(in thousands)
Current
Federal$63,306 $76,532 $60,406 
Foreign8,235 16,727 11,995 
State22,861 21,033 19,327 
Total Current94,402 114,292 91,728 
Deferred
Federal5,446 3,315 4,657 
Foreign(3,569)(3,705)(4,216)
State1,808 610 (792)
Total Deferred3,685 220 (351)
Total provision for income taxes$98,087 $114,512 $91,377 
The following table summarizes the significant differences between the U.S. federal statutory tax rate and the Company’s effective tax rate:

Year Ended April 30,
202420232022
(in thousands)
Federal income taxes at statutory rate$78,538 $93,976 $76,613 
State income taxes, net of federal income tax benefit19,008 16,847 14,730 
Impact of foreign rate differences(1,672)1,052 (2,827)
Net change in valuation allowance954 443 350 
Equity-based compensation(3,024)(1,942)(1,659)
Other permanent items3,704 2,670 2,649 
GILTI39 1,452 1,076 
Other540 14 445 
Total provision for income taxes$98,087 $114,512 $91,377 
The tax effects of temporary differences, which give rise to deferred income taxes are as follows:
April 30,
20242023
Deferred income tax assets:(in thousands)
Allowances on accounts and notes receivable$5,973 $5,339 
Accrued payroll and related costs2,606 2,102 
Insurance reserves4,568 4,165 
Inventory costs6,495 5,580 
Deferred compensation10,043 10,391 
Equity compensation3,903 3,716 
Acquisition related costs1,454 1,258 
Net operating loss carry-forwards1,928 1,368 
Disallowed interest expense2,097 1,854 
Investment in partnerships30,449 28,324 
Operating lease liability63,151 47,256 
Other deferred tax assets, net4,382 2,613 
Total deferred income tax assets137,049 113,966 
Less: Valuation allowance(12,541)(11,708)
Total deferred income tax assets, net of valuation allowance124,508 102,258 
Deferred income tax liabilities:
Amortization of intangible assets(41,663)(40,191)
Operating lease right-of-use assets(61,283)(45,966)
Depreciation(57,667)(46,715)
Derivative instruments(2,780)— 
Other deferred tax liabilities, net(1,923)(770)
Total deferred income tax liabilities(165,316)(133,642)
Deferred income tax liabilities$(40,808)$(31,384)
GILTI. The Company is subject 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. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred.
As of April 30, 2024, the Company’s assertion has not changed from the year ended April 30, 2023 that it does not intend to permanently reinvest its accumulated earnings in its non-U.S. subsidiaries and will continue to periodically distribute the earnings on an as needed basis. The Company does not anticipate significant tax consequences from any future distributions.
NOLs. During recent tax years, the Company generated certain state net operating loss carry-forwards which are available for use against taxable income in each respective state. The Company had gross state net operating losses available for carry-forward of $37.4 million and $26.5 million as of April 30, 2024 and 2023, respectively, which expire beginning in 2029.
Valuation allowance. Deferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carry-forwards. As of each reporting date, the Company considers new evidence, both positive and negative, that could affect the future realization of deferred tax assets. Valuation allowances are established if management believes that it is more likely than not the related tax benefits will not be realized. The valuation allowance as of April 30, 2024 and 2023 primarily relates to a portion of the outside basis difference that was created as a result of the impairment of goodwill recognized during the year ended April 30, 2020 and state tax attribute carryforwards. The net operating loss carryforwards expire beginning 2029.
Uncertain tax positions. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. The Company’s policy for recording penalties and interest associated with uncertain tax positions is to record such items as a component of selling, general and administrative expenses. The Company had no reserve for uncertain tax positions as of April 30, 2024 and 2023.
As of April 30, 2024, the tax years ended April 30, 2021 through 2023 remain subject to examination by the U.S. Internal Revenue Service. As of April 30, 2024, the tax years ended April 30, 2021 and 2023 remain subject to examination by the Barbados Revenue Authority and the tax years ended April 30, 2021 through 2023 remain subject to examination by the Canada Revenue Agency. In states in which the Company conducts business, the statute of limitation periods for examination generally vary from three to four years. Net operating losses dating back to 2009 are still being carried forward and remain subject to examination by the taxing authorities. The Company regularly assesses the potential outcomes of future examinations to ensure the Company’s provision for income taxes is sufficient. The Company recognizes liabilities based on estimates of whether additional taxes will be due and believes that no liability for uncertain tax position is necessary as of April 30, 2024 and 2023.