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Income Taxes
 12 Months Ended
Apr. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents the components of income before taxes for the years ended April 30, 2025, 2024 and 2023:
Year Ended April 30,
202520242023
(in thousands)
United States$158,770 $347,309 $392,299 
Foreign15,525 26,857 55,204 
Income before taxes$174,295 $374,166 $447,503 
The following table presents the components of the provision for income taxes for the years ended April 30, 2025, 2024 and 2023:
Year Ended April 30,
202520242023
(in thousands)
Current
Federal$40,773 $63,306 $76,532 
Foreign12,495 8,235 16,727 
State14,186 22,861 21,033 
Total Current67,454 94,402 114,292 
Deferred
Federal(1,057)5,446 3,315 
Foreign(7,045)(3,569)(3,705)
State(526)1,808 610 
Total Deferred(8,628)3,685 220 
Total provision for income taxes$58,826 $98,087 $114,512 

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,
202520242023
(in thousands)
Federal income taxes at statutory rate$36,588 $78,538 $93,976 
State income taxes, net of federal income tax benefit11,612 19,008 16,847 
Impact of foreign rate differences923 (1,672)1,052 
Net change in valuation allowance(693)954 443 
Equity-based compensation(2,086)(3,024)(1,942)
Other permanent items3,219 3,704 2,670 
GILTI132 39 1,452 
Goodwill impairment8,915 — — 
Other216 540 14 
Total provision for income taxes$58,826 $98,087 $114,512 
The tax effects of temporary differences, which give rise to deferred income taxes are as follows:
April 30,
20252024
Deferred income tax assets:(in thousands)
Allowances on accounts and notes receivable$4,399 $5,973 
Accrued payroll and related costs2,973 2,606 
Insurance reserves6,678 4,568 
Inventory costs6,181 6,495 
Deferred compensation10,338 10,043 
Equity compensation4,172 3,903 
Acquisition related costs1,812 1,454 
Net operating loss carry-forwards1,645 1,928 
Disallowed interest expense2,114 2,097 
Investment in partnerships32,751 30,449 
Operating lease liability83,581 63,151 
Other deferred tax assets, net4,934 4,382 
Total deferred income tax assets161,578 137,049 
Less: Valuation allowance(11,801)(12,541)
Total deferred income tax assets, net of valuation allowance149,777 124,508 
Deferred income tax liabilities:
Amortization of intangible assets(55,963)(41,663)
Operating lease right-of-use assets(80,251)(61,283)
Depreciation(64,167)(57,667)
Derivative instruments(130)(2,780)
Other deferred tax liabilities, net(1,181)(1,923)
Total deferred income tax liabilities(201,692)(165,316)
Deferred income tax liabilities$(51,915)$(40,808)
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, 2025, the Company’s assertion has not changed from the year ended April 30, 2024 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 $34.5 million and $37.4 million as of April 30, 2025 and 2024, respectively, which expire beginning in 2032.
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, 2025 and 2024 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 disallowed interest carryforwards. The state disallowed interest carryforwards do not expire.
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, 2025 and 2024.
As of April 30, 2025, the tax years ended April 30, 2022 through 2024 remain subject to examination by the U.S. Internal Revenue Service. As of April 30, 2025, the tax years ended April 30, 2022 and 2024 remain subject to examination by the Barbados Revenue Authority and the tax years ended April 30, 2022 through 2024 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 2010 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, 2025 and 2024.